Crypto Market Sentiment Stuck in ‘Extreme Fear’ for 14 Consecutive Days

Fear Dominates Crypto Markets for a Second Straight Week

Crypto investor sentiment remained firmly in “extreme fear” on Friday, extending the negative streak to 14 consecutive days, according to the widely followed Crypto Fear & Greed Index.

The index slipped three points to a reading of 20 out of 100 on Dec. 26, keeping sentiment at levels rarely seen since the indicator was launched in February 2018. The current downturn began on Dec. 13, making it one of the longest sustained periods of extreme fear on record.

The index is published by Alternative.me and tracks multiple market indicators, including volatility, trading volume, social sentiment, Google trends, and Bitcoin dominance.

Crypto Fear & Greed Index

Sentiment Weaker Than During FTX Collapse—Despite Higher Bitcoin Prices

Notably, today’s sentiment readings are lower than those recorded during the collapse of FTX in November 2022, a period that severely damaged confidence in the crypto industry and pushed Bitcoin toward $16,000.

This time, however, Bitcoin is trading at a much higher level. According to CoinGecko data, Bitcoin is currently priced around $88,650, roughly 30% below its all-time high of $126,080, set on Oct. 6.

Despite Bitcoin trading at nearly five times its FTX-era price, market confidence has yet to recover.

Macro Concerns Continue to Pressure Investor Confidence

Market sentiment has been sliding since early October, following renewed concerns over U.S.-China trade tensions, which erased nearly $500 billion from the broader crypto market on Oct. 10.

Adding to the pressure are fears that the U.S. Federal Reserve may pause interest rate cuts in early 2026. Last week, Jeff Mei, chief operating officer of crypto exchange BTSE, warned that Bitcoin could revisit $70,000 if the Fed maintains current rates for longer than expected.

Crypto Search Interest and Social Engagement Decline

On-chain analytics platform Alphractal reported over the weekend that crypto-related engagement metrics have dropped sharply across multiple channels, including Google search trends, Wikipedia page views, and online discussion forums.

“Crypto social volume has returned to levels typically seen during bear markets,” the firm noted.

“In December 2025, retail investors appear discouraged, disengaged, and largely absent from the crypto market.”

The decline in search and discussion activity suggests waning retail participation, even as institutional interest remains steady.

Bitwise CIO Points to ‘Crypto-Native Retail’ Pullback

Last month, Matt Hougan, chief investment officer at Bitwise, attributed the current market pullback largely to disengagement among crypto-native retail investors.

According to Hougan, this group has been repeatedly shaken by major industry events, including:

• The FTX collapse

• The memecoin downturn

• A delayed altcoin cycle

• The Oct. 10 liquidation event

“They were beaten down by FTX, they were beaten down by the memecoin debacle,” Hougan said, adding that many retail traders are now choosing to sit on the sidelines.

Traditional Retail and ETFs Continue to Show Strength

In contrast, Hougan noted that traditional retail investors—often entering crypto through regulated products—remain active.

Spot U.S. Bitcoin exchange-traded funds (ETFs) have attracted more than $25 billion in inflows so far in 2025, even as Bitcoin has posted a 5% loss year-to-date.

“Traditional retail, like my uncle, he’s moving into crypto,” Hougan said. “That part of retail is still alive.”

Conclusion: Fear Persists as Market Waits for a Catalyst

The prolonged stretch of extreme fear highlights a disconnect between price levels and investor confidence. While Bitcoin remains well above past cycle lows, uncertainty around macroeconomic policy, declining retail engagement, and muted speculative activity continue to weigh on sentiment.

Until a clear catalyst emerges—whether macro-driven or crypto-specific—market psychology may remain fragile despite stronger institutional participation.

See all our insights: Bitcoin World News