Anxiety is an in-between state where you are unconsciously over-conscious of your existence, of your place in this world and your current situation. This causes the mind to create unreal situations, that could or could not happen, but feel real and alter your daily life. While the mind is lost in this unreal scenarios, you are walking through life absent minded.
The anxious state can happen when the person is awake or asleep, making them conscious of an unreal situation even while sleeping, which translates in a bad night sleep or lack of it.