Cryptocurrency market lost $ 120 billion in January alone

In January 2026, the Crypto Fear & Greed Index fell to 24. According to analysts, this corresponds to the zone of «extreme fear» and indicates a significant increase in pessimism among investors and traders after sharp price fluctuations in key crypto assets. This level of the index is a signal of high caution in the market.

The index is calculated based on several indicators, including volatility, trading volumes, social media activity, bitcoin dominance, and search query analytics. Its scale ranges from 0 (maximum fear) to 100 (maximum greed). A drop to 24 reflects a general mood of risk aversion.

As recently as January 15, 2026, the index reached 61, indicating a zone of «greed,» but in a short time the market moved into a phase of fear. This indicates the sensitivity of investors to price fluctuations and the news background.

Analysts note that this level of fear usually indicates a high level of uncertainty. During such periods, investors may suspend activity, waiting for stabilization, or it may indicate the possibility of resuming price growth in the event of a change in sentiment. Overall, the crypto market has already lost $ 120 billion since the beginning of the year.

The Fear & Greed index is one of the key indicators of market psychology. Although it does not guarantee the direction of price movements, its values are often used as an additional factor in strategic decisions on the crypto market.