Cryptocurrency Fear and Greed Index 32, Market Fear Rapidly Intensifies

gas_fee_therapist · 2026-01-26T02:06:51+00:00

The fear and greed index in the cryptocurrency market has sharply declined from a high of 61 to 32 over the past week, indicating a significant increase in market participants' fear. This trend reflects worsening market sentiment and could influence future market direction.

gas_fee_therapist

2026-01-26 02:06:51

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The fear and greed index, a psychological indicator of the cryptocurrency market, has shown a sharp decline over the past week. After reaching a relative high of 61 last week, it has continued to fall and is now at 32, indicating that market participants’ fear has significantly increased.

Rapid Decline in the Index Over the Past Week

According to Odaily’s report, based on data from Alternative.me, an analysis of the fear and greed index over the last 7 days reveals a clear downward trend. Starting from 61 at the weekend, it dropped to 44 within a few days, and as of yesterday, it has fallen to 32, showing a rapid intensification. These fluctuations reflect a drastic deterioration in market sentiment beyond mere numerical changes.

Components and Significance of the Fear and Greed Index

A reading of 32 on the fear and greed index still indicates a “fear” phase. This index is not a single indicator but a composite of various market signals, including volatility(25%), trading volume(25%), social media interest(15%), market surveys(15%), Bitcoin’s share in the overall market(10%), and Google search volume analysis(10%). The fact that all these multi-layered indicators are pointing downward suggests a broadening market bearishness.

Historical Perspective on the Current Level of Fear

Looking at historical data, the current level of the fear and greed index can be better understood. A week ago, the index was at 26, and a month ago, it had fallen to 20, indicating an “extreme fear” level. While the current 32 is not an extreme fear situation, it still shows that investor sentiment is leaning bearish, and whether the index recovers will be an important gauge for future market direction.

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