Following the collapse of FTX, crypto market sentiment has fallen to extreme levels, with the Crypto Fear and Greed Index dropping to 9. Bitcoin briefly traded around $60,000 and then edged toward $65,000 as traders shifted to a cautious, de-risking stance.
The index combines volatility, losses, market momentum and trading volume, as well as social media engagement and Google Trends data related to Bitcoin. The move signals broad deleveraging and a shift to risk-off positioning, even as prices show a temporary rebound.
The metric is not a forecast for Bitcoin’s direction; instead, it reflects stress in the market, which historically has risen during systemic events. While extreme fear has sometimes aligned with local market bottoms, it is not a timing signal and should be interpreted as a snapshot of trader sentiment rather than a market predictor.
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