Crypto Fear Index Shows 14 Days of Extreme Fear at 20

The Crypto Fear & Greed Index has shown 'Extreme Fear' for 14 consecutive days, currently at a level of 20. Despite Bitcoin trading around $88,000, which is approximately five times its price during the November 2022 FTX collapse, the sentiment remains deeply pessimistic.

• The index relies on data such as volatility, volume, dominance, and social metrics.
• Bitcoin's current price shows minimal daily change while the Fear & Greed Index remains in the 'Extreme Fear' category.
• NFT-related tokens dropped about 7.4% over 24 hours, whereas AI and SocialFi-related baskets experienced small gains, suggesting market rotation.
• Despite higher prices and available spot ETF flows, the fear persists, indicating ongoing anxiety rather than a reaction to a single event.
• Regulatory pressures continue with U.S. agencies focusing on centralized venues and stablecoin issuers, affecting market sentiment.
• Derivative markets show caution, with flat or slightly negative funding rates and reduced leverage.
• Spot volumes are subdued compared to earlier periods, despite high price levels.

The market appears inflated on long-term charts but trades cautiously, with expectations of potential downturns.