Crypto Fear and Greed Index drops to 11, extreme fear sentiment dominates the market

The Crypto Fear & Greed Index continues to plummet, dropping to 11 from 16 in just one day, indicating that extreme fear is dominating the cryptocurrency market. This sharp decline reflects increasing investor concern amid high volatility, prolonged selling pressure, and a lack of positive factors to restore confidence. Most investors are shifting to a risk-averse stance, prioritizing position reduction over injecting new capital, thereby weakening buying power in the market.

Historically, such low levels often indicate a market sentiment leaning heavily towards pessimism, influenced by macroeconomic instability, legal concerns, and weakening on-chain activity. Although extreme fear can sometimes signal a period of stability or recovery, it currently shows that investor psychology remains fragile and the market faces many short-term pressures.