The Crypto Fear & Greed Index has remained in “extreme fear” for 14 consecutive days, hitting a score of 20 out of 100 on Dec. 26. Market sentiment has been declining since early October due to US-China tariff concerns, causing a $500 billion drop in the crypto market on Oct. 10.

Concerns that the US Federal Reserve may halt rate cuts in Q1 2026 are impacting investor sentiment. Bitcoin is currently trading at $88,650, down nearly 30% from its all-time high of $126,080. Despite this, the index score is lower than during FTX’s collapse, based on market volatility, trading volume, and social media sentiment.

Crypto search volume has plummeted, with Alphractal reporting a decline in Google searches, Wikipedia views, and forum discussions. Retail investors appear disheartened and disengaged from the market, with social volume reaching levels typical of bear markets.

Bitwise’s Matt Hougan attributes the market pullback to “crypto-native retail” investors who were affected by various market events. In contrast, “TradFi retail” is thriving, evidenced by the rise in spot crypto ETF inflows. Despite Bitcoin’s 5% loss in 2025, US Bitcoin ETFs have attracted over $25 billion in inflows.

Hougan points to the resilience of traditional retail investors, like his uncle, who are entering the crypto market. He notes the success of US Bitcoin ETFs, which have seen significant inflows this year despite Bitcoin’s performance.

Read more at Cointelegraph: Crypto Sentiment Stuck in Extreme Fear Zone for Two Weeks