Crypto Fear & Greed Index Surges to 21 Amid Prolonged Market Pessimism

The Crypto Fear & Greed Index has jumped to 21, representing a notable 4-point gain from the previous session, according to data from Coinglass. However, the uptick fails to pull sentiment out of the extreme fear territory, revealing that investor anxiety remains deeply entrenched in the market.

Looking at the broader picture, the 7-day moving average sits at just 16, while the 30-day average rests at 20. These figures underscore a prolonged spell of market apprehension that shows no signs of immediate reversal. The sustained low readings suggest that risk-averse behavior continues to dominate trading activity across the crypto space.

What This Means for Traders

When the Fear & Greed Index hovers in extreme fear—typically readings below 25—it often signals capitulation among market participants. Despite the marginal uptick to 21, the index remains firmly in this danger zone, indicating that selling pressure and defensive positioning are still prevalent. This environment historically presents both risks and opportunities, depending on individual risk tolerance and investment horizons.

Market participants are watching this metric with heightened attention, as any sustained climb above the extreme fear threshold could signal a potential shift in sentiment. For now, the readings reinforce that caution and defensive strategies continue to define the current market landscape.