FameEX Hot Topics | Crypto Fear & Greed Index Falls to 20, Indicating Heightened Market Panic

The crypto market is currently gripped by extreme fear, according to the latest reading from the Crypto Fear and Greed Index (CFGI). The index has fallen from a score of 34 on March 7 to just 20 as of today, signaling a notable drop in investor confidence. This steep decline places the market deep into the “extreme fear” category, underscoring growing anxiety among traders and investors.

Bitcoin, the leading cryptocurrency, has seen a rough start to March 2025. It recently dropped below its 200-day simple moving average (SMA), which was set at $83,362. On Monday, it hit an intraday low of $78,377 per coin. Bitcoin’s market capitalization currently sits at approximately $1.55 trillion, making up over 60% of the total $2.61 trillion crypto market cap. These figures reflect a broader downturn in the digital asset space, as price declines ripple through the sector.

The CFGI, hosted on alternative.me, suggests that sentiment may continue to worsen. With Bitcoin teetering near the $78,000 level, some analysts caution that a further dip may be possible. Just three days ago, the index read 34—categorized as “fear.” Now, with a score of 20, the market has officially entered “extreme fear,” potentially setting the stage for more volatility ahead.

Notably, the index hasn’t been this low in over a year, although it did briefly crash to a 10 on February 27, 2025. The CFGI is designed to track emotional sentiment in the crypto market, which is known for its heightened reactions. According to its creators, extreme fear may indicate investors are overly pessimistic—often seen as a potential buying opportunity. Conversely, extreme greed may signal an overheated market ready for correction.

In this atmosphere of growing concern, some investors may find cautious optimism. As fear dominates sentiment, disciplined traders are looking beyond emotion, focusing instead on strategy and longer-term fundamentals. With heightened market sensitivity, the coming days could offer both risks and selective opportunities for those navigating crypto’s complex emotional landscape.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.