Crypto Sentiment Stuck in Extreme Fear Zone for Two Weeks

Crypto market sentiment, tracked by the Crypto Fear & Greed Index, remained in the “Extreme Fear” zone for the 14th straight day as of December 26, with the score dropping to 20 out of 100. This marks one of the longest periods in the zone since the index launched in 2018, following a market downturn that began in October due to tariff fears. Investor sentiment is also pressured by concerns that the US Federal Reserve might pause rate cuts in early 2026, potentially leading Bitcoin to drop to $70,000, according to Jeff Mei of BTSE. Despite Bitcoin trading near $88,650, the current fear level is lower than during the FTX collapse in 2022. Furthermore, data shows a significant drop in crypto search volume and social media engagement, suggesting retail investors are discouraged. Bitwise CIO Matt Hougan attributed this retail depression to previous market events like FTX and the memecoin debacle, noting that while "crypto-native retail" is absent, "TradFi retail" continues to enter the market, evidenced by strong inflows into US Bitcoin ETFs.

(Source：Cointelegraph)