The Extended Fear & Greed Index: Crypto Fear & Greed Index at Longer Extremes Than During the FTX Collapse

An unusual phenomenon is taking place in the cryptocurrency market. The Crypto Fear & Greed Index has just recorded 14 consecutive days at the level of “extreme fear,” a longer period than during the FTX collapse in November 2022. What makes this noteworthy is not the level of fear itself, but the context in which it appears: Bitcoin is currently trading around $92,130, approximately 5-6 times higher than during the FTX crisis.

Paradoxical Phenomenon: High Prices but Low Sentiment

The index, developed by Alternative.me, is based on factors such as price volatility, trading volume, market dominance, and social media activity. On December 26, 2025, this index recorded a level of 20, within the 0-24 range classified as “extreme fear.”

The main difference compared to the FTX period: back then, Bitcoin plummeted from $20,000 to below $16,000 in just a few days, liquidity evaporated, and credit froze. Now, although Bitcoin is at an unprecedented high, investor sentiment is dominated by prolonged anxiety. This is not a sudden shock but a persistent, lingering negative pressure.

Selective Capital Flows, Not Panic Selling

The overall market remains subdued. According to Coingecko, NFT tokens have decreased by about 7.4% in 24 hours, while capital is shifting toward AI and SocialFi-related tokens, with single-digit percentage increases. This indicates strategic rotation rather than panic selling.

Spot trading volume remains subdued despite Bitcoin nearing all-time highs. Spot ETFs for Bitcoin and other assets have absorbed some capital, but not enough to ease the market’s tense sentiment.

Macro Pressures & Regulations: Genuine Needs

This prolonged anxiety is not without basis. US interest rates remain relatively restrained compared to the years after 2010. Regulatory agencies continue to intensify enforcement against centralized platforms and stablecoin issuers. Some exchanges are still under scrutiny following major legal settlement agreements.

The derivatives market also reflects similar caution. Funding rates on BTC perpetual contracts have narrowed around equilibrium or slightly negative, and open interest has decreased from local peaks, indicating traders are reducing leverage rather than increasing long positions excessively.

Market Looks Expensive but Acts as if Facing a Crash

The result is a contradictory picture: Bitcoin is at a high on the long-term chart, but trading activity suggests investors are still waiting for a deeper correction. The Fear & Greed Index, when at “extreme fear,” may signal that investors are overly pessimistic—and that often indicates buying opportunities. However, when fear persists for 14 days, it reflects something deeper: uncertainty about the market’s next move, in a context where prices are high but capital remains hesitant.