I just checked the Fear and Greed Index and it’s in critical territory: only 18 points. It was recently at 20, then rose to 25 on Wednesday, but has fallen again. Basically, investors are scared, and for good reason.

The geopolitical situation between the U.S., Israel, and Iran continues to generate uncertainty, and that’s reflected in the overall sentiment. But what’s most concerning is what I see in the crypto market data. Since last October’s collapse, Bitcoin has lost about 50% from its peak, and altcoins are even worse. 38% of them are nearing their all-time lows.

What catches my attention the most is that trading volumes have dropped 50%, and mentions of altcoins on social media are at two-year lows. Even Google searches for “Bitcoin going to zero” have increased, showing the level of pessimism. The Fear and Greed Index reflecting this extreme panic makes sense when you see all of this together. It seems we’re in one of those moments where caution is prevailing.