Fear and Greed Index Drops to 21
The Fear and Greed Index fell to 21 points today — its lowest level since April — signaling a phase of “extreme fear” among crypto investors.
Investors Turn Cautious Again
After a few weeks of moderate optimism, sentiment has sharply reversed. Heightened volatility, declining liquidity, and broader macroeconomic uncertainty are driving investors to reduce exposure and lock in profits.
What Does the 21 Level Mean?
A reading of 21 reflects peak caution, when panic sentiment dominates the market. Historically, these periods often coincide with local bottoms — moments when large investors quietly begin accumulating assets.
Impact on Bitcoin
The drop in the index aligns with Bitcoin’s correction below the key 110 000$ mark. Trading volumes on both spot and derivatives markets have risen, pointing to growing uncertainty and hesitation among traders.
Possible Scenarios Ahead
If the index remains in the “extreme fear” zone for several days, the market may continue to consolidate. However, history suggests that such phases often create attractive entry points for long-term investors.
