The crypto market is really scary. The Fear & Greed Index has dropped to 11, which is in the extreme fear zone. Yesterday it was 14, and a week ago it was 38, so this rapid decline is very unusual. Just a month ago, it was around 42.

The market capitalization has fallen from $2.97 trillion to $2.44 trillion over the past 7 days, a loss of about $530 billion. Interestingly, Bitcoin’s market share remains stable at around 56%. This means not only altcoins are dropping, but Bitcoin is also experiencing selling pressure.

The crypto Fear & Greed Index reaching this level is one of the lowest in the past year. The lowest point in the last 12 months was 10, and now it’s 11. Traders see such extreme fear as a contrarian indicator. When sentiment hits this bottom, the panic selling phase may be coming to an end.

However, in this environment, liquidity crunches and liquidations can increase, leading to higher volatility. The key now is not to pinpoint the exact bottom but to look for signs of market stabilization. We should watch whether the Crypto Fear & Greed Index starts rising again, if the market cap recovers, and whether volatility begins to subside.