Crypto Fear Index Plummets to 11, Market Sentiment Severely Deteriorated

Crypto Fear & Greed Index has entered the extreme fear zone. As of March 13, 2026, the index measuring overall market investor sentiment from 0 to 100 has recorded a reading of 11, reaching the most pessimistic level in the past year. This is not just a numerical change but indicates widespread fear spreading among market participants.

Crypto Fear & Greed Index Enters Extreme Fear Zone

The recent sharp deterioration in sentiment over the past few days is surprising. Just a week ago, the Crypto Fear & Greed Index was at 38, indicating a ‘fear’ level, and a month ago it was at 42, close to neutral. However, in recent days, this index has plummeted.

The 11 recorded on Thursday is only 1 point above the 12-month low of 10. This clearly shows that the market is in an extremely subdued psychological state. It has officially entered the ‘Extreme Fear’ zone, a level far beyond the usual fear experienced by investors.

Over $530 Billion Lost in a Week, Bitcoin and Altcoins Sold Off Simultaneously

The sharp decline in the Crypto Fear & Greed Index aligns with losses across the entire market. The total cryptocurrency market capitalization has decreased by about 18% over the past 7 days, dropping from $2.97 trillion to $2.44 trillion. This means over $530 billion has evaporated from the market.

Notably, Bitcoin’s market share remains around 56%, with little change. This suggests that the capital rotation is not into specific sectors but that both Bitcoin and altcoins are experiencing strong sell pressure simultaneously. The entire market is in ‘risk asset avoidance’ mode.

Crypto Fear & Greed Index as an Opposite Indicator: Sell-off Signal vs. Risk Signal

Investors and analysts often interpret the extreme fear level of the Crypto Fear & Greed Index as a ‘contrarian indicator.’ Such low sentiment can indicate that capitulation is underway and that long-term returns may improve.

However, in environments of extreme fear like this, positive signals are not the only consideration. During such times, liquidity crunches, increased liquidation volume, and widening bid-ask spreads often occur. There is always a risk that additional negative factors could amplify downward volatility.

Market Bottom Signals Are Found in Stabilization Indicators

Relying solely on the current level of the Crypto Fear & Greed Index makes it difficult to accurately determine the market bottom. It’s unclear whether the drop to 11 marks the final phase of a large-scale capitulation or is just a mid-stage of deleveraging.

Therefore, investors should focus on identifying signs of market stabilization rather than trying to pinpoint the exact bottom. Specifically, they should monitor whether ▲the overall market cap stabilizes ▲Bitcoin’s market share rises as a safe haven ▲daily volatility gradually subsides. When these indicators show positive signs, the extreme readings of the Crypto Fear & Greed Index will also carry more significance.