Crypto Sentiment Remains in Extreme Fear Despite Bitcoin Near $90K
Crypto market sentiment has stayed in “extreme fear” for 14 consecutive days, with the Fear & Greed Index at 20/100 on Dec. 26—one of its longest such stretches, and weaker than during the FTX collapse in 2022. This comes even as Bitcoin trades around $88,650, roughly five times higher than FTX-era levels and only ~30% below its all-time high.
Macro uncertainty continues to weigh on confidence, including U.S.–China tariff concerns and fears the Federal Reserve may pause rate cuts in early 2026. Retail participation is fading, with on-chain data showing sharp declines in search interest and social activity.
In contrast, institutional and traditional finance investors remain active. U.S. spot Bitcoin ETFs have seen over $25 billion in net inflows in 2025, highlighting a clear divergence between professional capital and retail sentiment.
Historically, prolonged extreme fear has often been a contrarian signal, though analysts warn macro risks and low year-end liquidity could keep volatility elevated in the near term.
