Crypto World
Extreme Fear continues to paralyze crypto markets heading into Monday
Crypto market sentiment collapses as CoinMarketCap’s Fear and Greed Index crashes to 9, signaling deep anxiety despite Bitcoin and majors stabilizing.
Summary
- CoinMarketCap’s Crypto Fear and Greed Index has dropped to 9, near its yearly low of 5 on Feb. 6, marking sustained “Extreme Fear” across the market.
- The index blends price momentum, BTC/ETH volatility, options positioning, stablecoin supply, and social data to frame whether sentiment is overly fearful or greedy.
- Bitcoin, Ethereum, and Solana prices have stabilized off recent lows even as sentiment stays depressed, turning the index into a context tool rather than a direct trading signal.
Crypto’s mood has flipped to panic, and CoinMarketCap’s own gauge is flashing red to prove it. The platform’s CMC Crypto Fear and Greed Index currently sits at just 9, firmly in “Extreme Fear,” down from 15 a week ago and well below the “Neutral” reading of 41 seen last month. Yesterday’s score was 8, while the yearly low hit 5 on Feb. 6, underscoring how aggressively sentiment has reset despite a still‑elevated market cap backdrop.
CoinMarket Cap’s Fear and Greed Index lowers to -9
CoinMarketCap describes the tool as “a powerful tool that analyzes market sentiment to help you make informed crypto investment decisions,” framing it as the most “trusted measure of overall crypto market sentiment” and “the number one, most cited and most trusted index of its kind” among mainstream financial outlets. The index runs on a 0–100 scale, where a lower value indicates extreme fear and a higher value “extreme greed,” effectively quantifying what many traders only feel anecdotally in price action. As the launch note put it, “this innovative index provides a wide‑ranging and quantifiable assessment of fear and greed for the entire cryptocurrency industry.”
Methodologically, the indicator pulls from five pillars: price momentum across the top 10 non‑stablecoin assets, forward‑looking volatility via BVIV and EVIV for Bitcoin and Ethereum, options put/call ratios, market composition through the stablecoin supply ratio, and CMC’s own social‑trend and engagement data. The Academy explainer stresses that “extreme fear likely indicates undervalued asset prices, while extreme greed likely indicates frothy valuations and overvalued asset prices,” echoing Warren Buffett’s maxim to “be fearful when others are greedy and greedy when others are fearful.”
In spot markets, Bitcoin (BTC) trades near $70,505 with roughly $42.8b in 24‑hour volume. Ethereum (ETH) changes hands close to $2,096, on about $20.9b in turnover. Solana (SOL) is around $87.6, after a 24‑hour range between roughly $86.2 and $88.6. That pricing backdrop lines up with a broader rebound in digital assets, with Bitcoin recently reclaiming the $71,000 area after last week’s washout and total crypto market capitalization moving back above $2.4t.
For traders, the sub‑10 print is less a trading signal than a context marker. CoinMarketCap is explicit that the Fear and Greed Index “is not a perfect indicator in itself but can provide a useful measure of the market’s sentiment,” best used alongside technicals, flows and macro drivers. In other words: quantify the fear, then decide whether you’re trading with the herd or against it.