Market Sentiment Hits Extreme Fear Zone as Greed Index Dips to 21

According to data from Coinglass, the Crypto Fear & Greed Index currently sits at 21, reflecting a modest 4-point gain from the previous reading. However, this marginal improvement masks a deeper market reality: sentiment remains firmly entrenched in extreme fear territory, suggesting investors continue to exercise substantial caution in their positioning.

The multi-timeframe perspective reveals the extent of current pessimism. The 7-day rolling average stands at just 16, while the 30-day average holds at 20—both figures underscore a prolonged period of investor anxiety. This extended spell of depressed sentiment indicators points to a market struggling to shake off underlying concerns and rebuild confidence.

What’s particularly noteworthy is how the recent uptick of 4 points failed to pull the index out of its extreme fear zone, highlighting the weight of bearish sentiment currently dominating market psychology. While traders are actively watching for any reversal signals, the persistence of these low readings suggests that true capitulation or fear exhaustion may not yet be complete.

For market participants, these depressed greed index levels historically present divergent opportunities—some view extreme fear as a potential bottom-formation signal, while others prefer to wait for clearer confirmation that the tide is genuinely turning. Either way, the greed index remains a critical barometer worth monitoring closely in the coming days.