The cryptocurrency fear and greed index has fallen to a very low level, increasing market panic.

The cryptocurrency fear and greed index has fallen to a very low 5, reflecting an increase in investor panic and risk aversion. According to NS3, this deterioration coincides with increasing global economic uncertainty, with the total market capitalization of the cryptocurrency market declining by over 22% in 2026, with significant losses for Bitcoin and Ethereum. Analysts suggest that while extreme fear may present buying opportunities, the market may enter a prolonged reassessment phase, with a volatile rebound potentially occurring before any sustained recovery.