The cryptocurrency market is plunging into fear: the index has fallen below the critical level

Recent data shows that the cryptocurrency market remains in a state of deep concern. The Fear and Greed Index, a key barometer of investor sentiment, dropped to 23 as of December 27, 2025. Although this represents a slight increase from 20 points a week ago, the indicator is still well below the threshold of 30 points, which signals a healthy market.

Prolonged Wave of Anxiety in the Cryptocurrency Market

What is particularly alarming is that the market has been in an extreme fear zone for over two months straight. Since early November (more precisely, since November 3 ), the Fear and Greed Index has remained almost constantly below 30 points. This trend resembles the dramatic period of the last quarter of 2022, when the crypto industry faced significant upheavals.

How the Fear and Greed Index is Calculated

This indicator is a comprehensive tool for measuring market emotions, based on multiple variables. Market volatility and trading volume are the two most significant components, each contributing 25% to the index (by 25% ).

Social media and various market surveys add another 30% (by 15% each ). The dominance of Bitcoin in the market (10% ) and search query trends on Google (10% ) provide valuable insights into public interest in cryptocurrencies.

This multi-factor system allows for an objective assessment of the psychological state of market participants.

What Does Fear Mean for Investors

When the index remains below 30, it signals excessive caution and panic in the market. Investors prefer to protect their assets rather than expand their positions. Such periods historically create both risks and opportunities for experienced traders who can anticipate a market sentiment rebound.