Fear & Greed Index Hits 23-Day Extreme Low — Longest Since Terra‑LUNA Crash
The Crypto Fear & Greed Index fell to 8, marking a 23-day streak of "Extreme Fear" — the longest continuous period since the 2022 Terra‑LUNA crash. The reading signals deep investor anxiety and heightened volatility, with historical links between prolonged fear and forced liquidations or sharp corrections. Market drivers cited include higher interest rates, banking shocks, regulatory pressure and recent headline liquidations. On‑chain data suggests reduced accumulation from large holders and institutions, not just retail panic, indicating a structural shift toward risk‑off behavior. Bitcoin is described as stalled while smaller altcoins have taken larger losses as capital moves to safety. Some analysts view extreme fear as a disciplined buying opportunity for top assets like BTC and ETH, but uncertainty remains over whether the current streak will precede a rebound or deeper slump. Traders should monitor sentiment indicators (Fear & Greed Index), on‑chain accumulation metrics and macro signals (rates, banking stability, regulation) to time positions amid elevated volatility.
Bearish
A 23‑day streak at an "Extreme Fear" reading (index = 8) implies sustained risk‑off behavior across investor cohorts. On‑chain signals of reduced accumulation by large holders and institutions increase the likelihood of lower liquidity and larger price swings. Combined with macro pressures—higher interest rates, banking shocks and regulatory headwinds—this environment favors deleveraging and periodic forced liquidations, which are bearish in the near term. Historically, similar extended fear periods (notably the 2022 Terra‑LUNA collapse) preceded substantial drawdowns before eventual recoveries; that pattern suggests elevated downside risk short term followed by potential buying windows for disciplined long‑term investors. For traders: expect higher intraday volatility, wider spreads, and greater risk of cascade liquidations; favour tighter risk management, smaller position sizes, hedges or cash allocations now, and consider accumulation only after clear signs of stabilization in sentiment and on‑chain flows.