Crypto Sentiment Index Plummets to FTX-Like Levels of 'Extreme Fear'

The crypto sentiment index has dropped to alarming lows, reflecting 'extreme fear' as market volatility surges. Investors are retreating to defensive stances amid rising anxiety.

The current climate in the cryptocurrency market is marked by a notable downturn in sentiment, with the sentiment index hitting levels reminiscent of the FTX debacle. Recently, this gauge has registered a concerning reading of 'extreme fear' at 9.

This downturn can be attributed to several factors, including a significant uptick in market volatility. As prices fluctuate sharply, investors are increasingly adopting defensive strategies to mitigate their risk exposure. Coupled with this, there has been a noticeable increase in search interests driven by anxiety, further contributing to the decline of the sentiment index.