Bitcoin Faces Extended Period of Extreme Fear Amid Market Struggles
Over the past year, the Crypto Fear and Greed Index has shown that fear or extreme fear accounted for more than 30% of readings, with the current reading at 17, indicating extreme fear in the market. Bitcoin is trading at approximately $89,952.86 and is struggling to maintain its position above $90,000, which is about 30% below its all-time high. Since the significant liquidation crash in October 2025, Bitcoin has declined roughly 36% from its peak with little substantial recovery to date.
A notable technical indicator, the death cross—where the 50-day moving average crosses below the 200-day moving average—occurred in November 2025 and coincided with a local bottom near $80,000 on November 21, 2025. In the current market cycle starting from 2023, every death cross has marked a significant local bottom, reinforcing its role as a contrarian indicator.
Investor sentiment in US equities also reflects fear, with the CNN Fear and Greed Index at 42. The S&P 500 trades around 6,827, just below its all-time high. Overall, fear dominates investor psychology across both US equities and cryptocurrency markets.
