Haciyev Reşit 
In the cryptocurrency markets, the Fear & Greed Index, which measures investor sentiment, has dropped to its lowest level in history, highlighting a significant psychological breakdown in the market. Recent data shows the index falling to 10 points, even below the “extreme fear” threshold. This level indicates that investor confidence in crypto has weakened considerably in recent months. Market analysts note that price declines and high volatility are putting pressure on investor behavior, and the current reading points to a rare historical environment of panic.
How the Fear Index is Calculated
Measured on a scale from 0 to 100, the Fear & Greed Index combines multiple factors—including volatility, market momentum, social media engagement, Bitcoin dominance, and Google search trends—into a single sentiment score. A reading near 0 indicates “extreme fear,” while a reading near 100 signals “extreme greed.” The drop to 10 shows that the majority of investors have moved into a highly cautious, risk-averse position. Analysts attribute much of the current fear to the massive liquidation wave on October 10, 2025, known in the industry as “10/10.” That day saw some of the sharpest liquidations in crypto history, revealing structural weaknesses in the market such as:
- Low liquidity environments
- Excessive leverage use
- Cross margin risks
- Strained exchange infrastructures under heavy load
Since then, investor sentiment has not fully recovered, indicating that market confidence has yet to return.
Institutional Optimism vs. Retail Fear
Another notable aspect of the current fear level is its contrast with ongoing institutional developments. Firms like BlackRock, Citadel, and other major financial players continue to invest in DeFi, tokenization, and moving real-world assets (RWA) onto blockchain. Analysts suggest that while retail investors are focused on short-term price drops and acting out of fear, institutional investors maintain a longer-term perspective, continuing to take positions. Historically, periods of extreme fear have often coincided with strong buying opportunities over the long term.
Conclusion
The Fear & Greed Index hitting 10 underscores the significant weakening of investor psychology in crypto. However, ongoing institutional interest and developments in RWA and DeFi indicate that the long-term outlook is not entirely negative. Historically, extreme fear periods often align with market bottoms, and in the coming months, macro developments and institutional capital flows are likely to be the main drivers of market direction.
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