Market panic has surged to extreme levels.

The Crypto Fear & Greed Index (Alternative.me) has dropped to 5 points, while the CoinMarketCap Fear & Greed Index fell to 8 points — both signaling deep extreme fear.

Such readings historically occur during:

• liquidation cascades
• capitulation phases
• aggressive deleveraging
• peak negative sentiment cycles

Extreme fear does not automatically signal a bottom — but historically, sub-10 readings tend to coincide with:

• volatility spikes
• forced selling exhaustion
• long-term accumulation zones forming

For traders, the key question is whether this represents: 📉 the beginning of a broader downside move or 📈 late-stage panic before stabilization

Sentiment is now at levels rarely seen outside major correction events.