Crypto Fear & Greed Hits 9-Year Low at 9; Extreme Fear Reading Rises

Crypto sentiment plunged to its lowest level since the FTX collapse as Bitcoin’s recent sharp decline fueled widespread deleveraging. The Crypto Fear and Greed Index reached 9 on February 6, categorized as “extreme fear”—a reading last seen in 2022—following a volatile week for Bitcoin and altcoins. The index hit 12 the previous day, 16 last week, and 42 last month, reflecting a rapid shift from cautious to defensive trading. Constructed from volatility, drawdowns, momentum, volume, social media, and Bitcoin dominance, it measures sentiment rather than price direction. A rise in volatility, defensive positioning, and fear-driven search interest typically depress the gauge. Bitcoin briefly touched $60,000 on Thursday before rebounding toward $65,000, signaling a whipsaw between forced liquidations and opportunistic buying. While some buyers are stepping in near key levels, the reading indicates traders remain in a sell-first mode. Extreme readings historically often precede bottoms but do not predict future prices.