Crypto Fear Index Stuck in Extreme Fear for Two Weeks

Crypto market sentiment stayed in extreme fear today, marking the 14th straight day in that zone. This is now one of the longest extreme fear runs since the index launched in February 2018. 

The Crypto Fear and Greed Index fell three points to a score of 20 out of 100 on Dec. 26. It is lower than levels seen during the FTX collapse in November 2022, when Bitcoin slid toward $16,000.

The index tracks volatility, trading volume, social activity, trend data, and Bitcoin market share. All components have weakened through December.

Macro Pressure Drags on Prices

Sentiment began sliding in early October after renewed US China tariff concerns hit risk assets. On Oct. 10 alone, nearly $500 billion was wiped from total crypto market value.

Additional pressure came from rate policy worries. Traders are watching the US Federal Reserve closely after signals that rate cuts may pause in the first quarter of 2026. Last Monday, BTSE chief operating officer Jeff Mei warned Bitcoin could drop to $70,000 if rates stay unchanged.

Bitcoin is currently trading at $88,650, according to CoinMarketCap data. That level is nearly 30% below its Oct. 6 record high of $126,080. The drawdown has weighed heavily on short-term positioning and derivatives flow.

Retail Activity Fades Fast

User interest has dropped alongside prices. Data platform Alphractal said crypto search volume on Google and Wikipedia has fallen sharply. Forum posts and social media discussions are also down.

Alphractal said crypto social activity has returned to levels usually seen during bear markets. It added that retail traders appear discouraged and mostly inactive heading into year end.

This drop in participation has reduced spot volume and slowed new wallet growth across major chains.

Split Between Retail Groups

Bitwise chief investment officer Matt Hougan said last month that the pullback is driven by crypto native retail stepping away. He said this group was hit by multiple shocks, including FTX, memecoin losses, weak altcoin cycles, and the Oct. 10 liquidation event.

Hougan said many of these traders are choosing not to re-enter the market yet.

At the same time, he said traditional retail investors are still buying through regulated products. US spot Bitcoin exchange traded funds have pulled in more than $25 billion in inflows so far in 2025.

That inflow came despite Bitcoin posting a 5% loss year to date. The data shows fear remains high, but capital from outside crypto circles continues to enter through ETFs.