The Crypto Fear & Greed Index has dropped to 10, its lowest point since June 2022, as investor sentiment deteriorates.
The Crypto Fear & Greed Index has dropped to 10, its lowest point since June 2022, as investor sentiment deteriorates. Bitcoin has fallen below $86,000, down 22% from its peak of over $109,000 last month, with an 11% decline this week alone. Major altcoins have also experienced steep losses, with Ether down 17% and Solana 18%. The GMCI 30 Index, which tracks the top 30 cryptocurrencies, has fallen about 13% this week to 148.82.
The market decline follows U.S. President Donald Trump’s announcement of a potential 25% tariff on European goods, which has fueled investor fears. Additional tariffs on Canada and Mexico, set to take effect on March 5, have added to market concerns. "Ongoing regional tariff wars and weak consumer sentiment have dampened investor confidence," said WeFi Head of Growth Agne Linge. The stock market’s reaction to economic uncertainty has led investors to pull money from riskier assets, with Bitcoin's volatility making it an unattractive short-term option.
The last time the Index reached such extreme fear levels was in June 2022, during the collapse of the Terra ecosystem, hedge fund Three Arrows Capital, and crypto lender Celsius. At that time, the market entered a prolonged downturn, though Bitcoin later surged over 100% when the Index hit similar levels in September 2024. GMI Head of Macro Research Julien Bittel pointed out that history suggests 25% pullbacks are common in bull cycles. BRN analyst Valentin Fournier said, "While some fear the start of a bear market, U.S. efforts to establish a National Crypto Reserve remain a major long-term catalyst." He expects a market rebound before the end of the week, maintaining a bullish stance on Solana while staying neutral on Bitcoin and Ether.
The Index, which measures market sentiment on a scale from 0 (extreme fear) to 100 (extreme greed), takes into account volatility, market momentum, trading volume, social media sentiment, and Bitcoin dominance. A low value often signals a buying opportunity, while a high value suggests a possible market correction. Just last month, the Index hit a yearly high of 84 following Trump’s inauguration, which coincided with Bitcoin’s record-breaking price.
With tariffs and economic uncertainty weighing on investors, the outlook remains divided. Some see the plunge as a warning of a prolonged downturn, while others believe the drop in sentiment could set the stage for a market recovery.
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