Crypto Fear & Greed Index re-enters 'Extreme Fear'...investor sentiment rapidly deteriorates

The Fear & Greed Index, a key gauge of sentiment in the crypto market, has fallen back into the “Extreme Fear” zone.

According to Cointelegraph on the 7th (local time), the Crypto Fear & Greed Index, as tracked by CoinMarketCap, printed 18, putting it in “Extreme Fear” territory. Readings of 20 or below are classified as Extreme Fear.

The index had briefly recovered to the “Fear” level last week at 20 and rose to 25 on the 5th, but has since declined again. The drop is attributed to a weakening appetite for risk assets amid escalating geopolitical tensions among the U.S., Israel and Iran.

The crypto market has remained broadly weak since a sharp selloff in October 2025. At the time, Bitcoin (BTC) fell more than 50% from its all-time high, and hundreds of billions of U.S. dollars in market capitalization evaporated across the altcoin market.

Altcoins are now showing particularly pronounced weakness. According to CryptoQuant analyst Darkfost, about 38% of all altcoins are trading at prices near their all-time lows. The analyst said the situation is more severe than in the immediate aftermath of the FTX collapse.

Over the same period, crypto trading volume is also estimated to have declined by about 50%. Darkfost noted that “altcoins are generally where market liquidity flows in last,” adding that “given the geopolitical tensions and deteriorating macro environment seen in recent months, the current situation is an expected trajectory.”

Sentiment indicators also point to mounting investor anxiety. According to on-chain analytics platform Santiment, social-media mentions of altcoins have fallen to the lowest level in the past two years. Google Trends data also show that in February 2026, searches for “Bitcoin going to zero” hit their highest level since 2022.