These days, market sentiment is really at rock bottom. I heard that the Crypto Fear Index has dropped to 11, but I think few people realize how serious this is. Last year's lowest point was 10, so being just one point above that indicates an extreme fear phase.

In just one week, the market capitalization has evaporated by $530 billion. It went from $2.97 trillion to $2.44 trillion. Interestingly, Bitcoin's market share remains stable at around 55%. This suggests that funds are not flowing into a specific coin but are being sold off across both Bitcoin and altcoins.

Among traders, there's a tendency to see this extreme fear index as a contrarian indicator. When sentiment drops this low, it could actually signal a potential rebound. However, in the current environment, liquidity is drying up, and liquidations could cascade, which is problematic. If additional shocks occur, volatility could increase even more.

What we should be watching now isn't the exact bottom but signs of stabilization. Whether the market cap stabilizes, if the Crypto Fear Index stops falling, or if daily volatility begins to subside—all of these are important. It could be the end of panic selling or just a mid-process.