Crypto Fear & Greed Index Plummets to 9, Reaching Extreme Fear Levels Not Seen Since FTX Collapse

The Crypto Fear & Greed Index, a key market sentiment indicator, has plunged to a reading of 9, signaling "extreme fear" among investors. This level matches the lows last witnessed during the market turmoil following the collapse of the FTX exchange in November 2022. The index, which aggregates data from volatility, market momentum, social media, surveys, and Bitcoin dominance, suggests a deeply pessimistic outlook is currently prevailing in the cryptocurrency space. Analysts often view such extreme fear readings as potential contrarian indicators, historically sometimes preceding market recoveries. However, the current sentiment underscores the significant pressure on major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) amid broader macroeconomic uncertainty and regulatory concerns. The last time the index hovered at these depths was during one of the most severe crypto winters, drawing direct parallels to a period of major distress and loss of investor confidence.