The cryptocurrency market’s fear and greed index has reached a historic low

On Monday, February 23, the crypto market’s Fear and Greed Index hit a historic low of just 5 points. Such a value has been recorded only three times since the index began: in August 2019, June 2022, and now, in February 2026.

The Fear and Greed Index is used as an indicator of trader sentiment: the «green» zone indicates a preference for accumulation, while the «red» zone shows a tendency to sell. The current value corresponds to the state of «extreme fear,» which reflects a sharp decline in market participants' confidence.

The fall in the index occurred amid a correction: according to CryptoRank, bitcoin has fallen by 3.3% over the past day, Ethereum — by 4.8%, and most altcoins have lost between 0.3% and 7%. This has created an atmosphere of panic among retail investors.

At the same time, experts emphasize that the situation is not exceptional. Analysts, including Anthony Pompliano and Alec Carter, believe that it is at times like this that «smart money» enters the market, while institutional investors maintain their positions.

Thus, the record drop in the Fear and Greed Index reflects short-term trader nervousness, but at the same time may signal a new wave of investment by large players.