The cryptocurrency market’s fear and greed index fell to a historic low

The crypto market’s Fear and Greed Index dropped to 5 points, the lowest level in the history of the indicator. This result indicates a sharp deterioration in investor sentiment in recent months.

The index is based on several parameters: volatility, market momentum, social media activity, bitcoin dominance, and search trends. Values closer to zero indicate «extreme fear.»

Analysts attribute the decline to the events of October 10, 2025, which are called «10/10» in the industry. That was the largest liquidation in the history of the crypto market: more than $ 19 billion in margin positions were forcibly closed within a day, affecting more than 1.6 million accounts. Bitcoin lost about 14%, and the drop in altcoins was even deeper.

This wave of liquidations exposed the weaknesses of the derivatives market: low liquidity, excessive leverage, cross-margining risks, and overloaded exchange infrastructure. Since then, there has been no sustainable recovery in sentiment.

At the same time, the situation contrasts with the activity of major financial players. BlackRock, Citadel, and other institutional investors continue to develop DeFi and tokenization projects, including projects to transfer real assets to the blockchain.

Experts note that retail investors are responding to short-term risks, while institutions are taking a long-term view, considering the current phase as an opportunity for strategic development.