Recent applications for spot XRP ETFs have been submitted by the Chicago Board Options Exchange, with the SEC recognizing Grayscale’s ETF applications for Dogecoin and XRP, showcasing growing acceptance of digital assets.

Investors are advised to exercise caution during this volatile market period and conduct thorough research before making financial commitments.

He attributes recent market turbulence to the US Federal Reserve's cautious approach to interest rate cuts, which are typically seen as bullish for crypto markets.

The Crypto Fear & Greed Index currently sits at a score of 21, indicating 'Extreme Fear' in the market, having dropped significantly from a neutral score just days prior.

He referenced the 2022 Bitcoin downturn, where prices fell below $20,000 due to Federal Reserve interest rate hikes, followed by a recovery as market conditions stabilized.

While retail investors are selling off assets, institutional players continue to accumulate Bitcoin amid the volatility, indicating diverging market strategies.

Richard Teng, CEO of Binance, views the current downturn in the crypto market as a 'tactical retreat' rather than a complete reversal, drawing on historical resilience in crypto assets.

Bitcoin ETFs have attracted significant inflows totaling $39.03 billion, although recent outflows of $539 million and $366 million on February 24 and 25, respectively, reflect mixed institutional sentiment.

The rising number of requests for crypto exchange-traded funds (ETFs) signals increasing institutional interest and the legitimacy of cryptocurrencies as assets.

Despite the downturn, Teng believes this dip is not indicative of fundamental weakness, and he suggests that a shift in the Fed's stance could positively impact the market.

Teng highlighted that market pullbacks can present strategic opportunities for experienced investors, as crypto has historically shown the ability to recover from macroeconomic downturns.