Crypto Fear & Greed Index Drops to 44, Indicating Market Fear

The crypto market experienced a shift to a risk-off sentiment, with the Crypto Fear & Greed Index dropping to 44, indicating a move from Neutral to Fear.

Traders Shift Toward Large Caps

Focus on large-cap cryptocurrencies signals cautious trading behavior.
Traders are reallocating funds from obscure altcoins to major tokens like Bitcoin, Ether, and XRP.
Momentum for smaller coins may depend on future spot crypto ETF launches.

Price Moves Are Mixed

Bitcoin is down 5% over the past month; Ether has risen 9%.
The wider altcoin market shows pressure, though some tokens demonstrate strength.
The Altcoin Season Index is at 56, indicating potential for Altcoin Season based on top 100 altcoins vs. Bitcoin over 90 days.

THIS IS THE FINAL SHAKEOUT FOR ALTCOINS

Alts are more OVERSOLD than during:

COVID
FTX Crash
Tariff War

No one believes anymore
That’s exactly why the altseason is coming pic.twitter.com/7VTU742qmU

— Rekt Fencer (@rektfencer) September 6, 2025

Market Sentiment and Predictions

Some traders view the current pullback as necessary for altcoins, referencing lower trading volumes.
Market technician Daan Crypto Trades cautions about potential price drops for Bitcoin, which could trigger panic around the $100,000 mark.
Analysts warn against relying too heavily on historical cycles for predictions.
Michael van de Poppe argues that altcoins are undervalued compared to past cycles, suggesting unique dynamics in 2025.