The Crypto Fear and Greed Index tracks market sentiment, swinging from 0 (extreme fear) to 100 (extreme greed). Hitting 10 is rare, last seen in June 2022 when Terra’s stablecoin imploded, 3AC went bust, and Celsius froze withdrawals, cratering crypto trust.
This fear spike signals panic selling and shaken confidence, potentially worsened by recent events like Trump’s tariff threats and ETF outflows. It’s a red flag—or a golden chance—for savvy traders.
Will this trigger a rebound like 2022’s eventual recovery, or a steeper crash? The market’s on edge.
The crypto market’s mood just hit rock bottom, with the Crypto Fear Index tumbling to a spine-chilling 10 on February 26, 2025—a level unseen since the catastrophic collapses of Terra, Three Arrows Capital (3AC), and Celsius in June 2022. This Extreme Fear reading, reported by Cointelegraph, comes as Bitcoin slipped below $90,000, igniting a wave of panic that’s got traders sweating bullets. It’s a déjà vu moment, harking back to a time when $60 billion vanished from the ecosystem in weeks, and the Crypto Fear Index became a barometer of doom.
What’s sparking this dread? Bitcoin’s 25% slide from its January peak—down from $108,000—pairs with a brutal $325 billion market wipeout since February 21, triggered by the $1.4 billion Bybit hack. Add in $935 million in Bitcoin ETF outflows and Trump’s tariff threats rattling global markets, and the Crypto Fear Index is flashing red for good reason. Back in ‘22, Terra’s stablecoin crash, 3AC’s liquidation, and Celsius’s withdrawal freeze sent shockwaves; today’s chaos feels eerily similar, with X posts screaming “buy fear, sell greed” amid the turmoil.
Yet, there’s a flip side. Some analysts, like CoinGape’s Bhushan Akolkar, see this Crypto Fear Index low as a contrarian signal—panic often precedes rebounds, as it did post-2022 when Bitcoin surged 78% from $48,000. Still, the market’s maturity is under scrutiny; while less chaotic than FTX’s 2022 fallout, sentiment’s fragile. Will this fear fuel a fire sale or a phoenix-like rise? With volatility spiking and altcoins bleeding, the Crypto Fear Index says one thing loud and clear: buckle up. https://x.com/Lutcheann