Market Sentiment Drops to Extreme Fear
The Fear and Greed Index for both the stock market and the crypto market has fallen to 11, placing investor sentiment deep in the extreme fear zone. This level typically signals heightened uncertainty, risk aversion, and cautious behavior across financial markets.
Investors Shift Toward Defensive Positioning
Extreme fear often results in reduced risk-taking, increased selling pressure, and a preference for safe-haven assets. In both traditional and digital markets, traders may be stepping back as volatility increases and macro uncertainty persists.
Potential Market Scenarios
Historically, such low sentiment values have appeared during periods of major corrections, liquidity stress, or macroeconomic shocks. However, these zones can also act as accumulation points for long-term investors who view extreme fear as a contrarian buy signal.
