Crypto enters panic zone: Fear and Greed Index drops to critical level

The cryptocurrency market is experiencing a sharp escalation of negative sentiment. The Fear and Greed Index, a key indicator of investor emotional state, plummeted by 21 points in just 24 hours, reaching a level of 21 and entering the "Extreme Fear" zone.

This rapid decline in the index reflects a dramatic shift in market participants' behavior. While investors previously showed indecision, now fears and anxiety dominate. The indicator, which regularly tracks the psychological climate of the crypto sector, clearly demonstrates how deeply rooted uncertainty is among traders and asset holders.

Extreme fear is one of the most alarming signals in the market. At this level, investors tend to avoid risks, minimize positions, and look for ways to withdraw funds. Such widespread caution often exacerbates volatility and can lead to further declines in digital asset prices.

Understanding the movements of the Fear and Greed Index helps market participants better navigate the current situation and make more informed decisions about their portfolios.