The Crypto Fear and Greed Index, a key measure of investor sentiment, has dropped to "extreme fear" levels. The index currently stands at 18, down from 20, signaling a cautious market atmosphere.
This downturn follows a brief recovery, with sentiment contracting amid escalating geopolitical tensions between the US, Israel, and Iran, which are eroding risk appetite and increasing macroeconomic uncertainty.
Previously, the index hit a yearly low of 5 in February, impacted by market downturns, geopolitical issues, and concerns over interest rate policy, liquidity, and US government debt. Cryptocurrencies have been in a bear market since the October 2025 crash, which saw Bitcoin's price plummet by over 50% from its all-time high. Altcoins have been particularly hard-hit, with 38% hovering near all-time low prices.
Analysis indicates a significant reduction in crypto trading volume. Mentions of altcoins on social media have also reached a two-year low, mirroring a global spike in searches for "Bitcoin going to zero."