The Crypto Fear & Greed Index remains at record-low levels, signaling that “extreme fear” continues to dominate the market.

Persistent extreme fear typically reflects:

• deep uncertainty among retail participants
• defensive positioning and reduced risk appetite
• elevated sensitivity to negative headlines

Historically, prolonged periods of extreme fear often emerge near local or macro bottoms, as emotional selling exhausts weaker hands. However, sentiment alone does not guarantee an immediate reversal — markets can remain fearful longer than expected.

For traders, the current reading suggests a market environment driven more by emotion than fundamentals, making disciplined risk management and confirmation signals especially important.