Crypto Fear & Greed Index Hits Extreme Fear Level at 20

The Crypto Fear & Greed Index for Bitcoin  BTC +1.36% and Ethereum  ETH +1.26% has fallen into ‘extreme fear’ territory at a score of 20 as of late December 2025, indicating market pessimism.

This sentiment shift is impacting market dynamics, with Bitcoin and Ethereum experiencing volatile trading conditions and influencing altcoin trends across the cryptocurrency market.

The Crypto Fear & Greed Index has reached “extreme fear,” scoring 20. This decline indicates a pessimistic sentiment throughout the Bitcoin (BTC) and Ethereum (ETH) markets. Predominantly driven by high price swings, the index reflects social media negativity. Alternative.me compiles this index, considering factors like volatility, market momentum, and social sentiment. The index’s descent follows BTC’s trading below $87,000 on December 25 and ETH’s reclaim of the $3K level amid negative sentiment. As extreme fear grips the market, the index’s components highlight a decrease in trading volume and dominance.

Crypto Fear & Greed Index Report: Currently in “extreme fear” territory at a score of 20 as of late December 2025, reflecting dominant pessimism across Bitcoin (BTC) and Ethereum (ETH) markets.

The fear’s weight comprises various factors, such as volatility (25%), market momentum (25%), social media signals (15%), and search trends (10%). The index’s interpretation suggests potential bottoms before recovery, impacting BTC and ETH. Historical patterns indicate extreme fear in 2025 over 30% or more, similar to past phases.

On-chain data captures prolonged fear and thinning liquidity, with coordinated liquidations reaching $20 billion in November 2025. Despite retail panic, BTC and ETH maintain profitability metrics per Glassnode. However, broader market trends show BTC dominance fear and altcoin correlations.

Community reactions lack direct quotes from notable figures like Vitalik Buterin and Changpeng Zhao. While the index’s decline reflects intense market panic, no regulatory actions have been reported. Social scans reveal prevalent fear among investors, with market volume drops signifying potential price corrections. CFGI.io and Binance data offer insight into BTC/ETH sentiment dynamics in this period.

Historically, extreme fear readings could signal market bottoms, driven by volatility and volume changes. As markets respond to the index, Layer 1 assets and governance tokens could experience liquidity shifts and dominance spikes. These patterns suggest potential shifts in market recovery dynamics.