Extreme fear replaces greed in the cryptocurrency market after a drop of $120 billion


The Cryptocurrency Fear and Greed Index fell to 24 on January 21, 2026, signaling a sudden return to extreme fear after briefly entering greed territory last week.

Market sentiment has deteriorated sharply, as cryptocurrencies face another major decline amid growing geopolitical tensions.

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Cryptocurrency market sentiment has fallen into extreme fear

BeInCrypto mentioned earlier Since this week, President Trump’s threats of tariffs against the European Union have led to a wider decline in the market, which has greatly affected risk assets. The pressure mounted on Tuesday.

Speaking in Davos, he stressed US Treasury Secretary Scott Besent The Trump administration’s willingness to implement tariffs as a major geopolitical tool, a stance that has also unnerved global markets.

Data from BeInCrypto Markets showed that Bitcoin (BTC) fell below the $90,000 level, and also briefly fell below $88,000. Ethereum (ETH) also fell below $3,000.

Overall reduction resulted Delete more The value of the total market of digital currencies more than $ 120 billion during the last 24 hours.

Cryptocurrency market performance on January 21. Source: BeInCrypto Markets

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Derivatives markets reflected the severity of the move, with widespread forced liquidations. Over 182,000 merchants liquidated During the past daypushing the qualifying total to $1.08 billion. Long positions accounted for $989.9 million in losses.

The strong sell-off also heavily affected investor sentiment. The Fear and Greed Index for cryptocurrencies fell today to 24. This represents a return to extreme fear after the market reached the greed zone of 61 last week, on January 15.

“The capital runs to the rescue,” Risk-Off replied. books A market watcher.

The indicator provides an overview of the psychology of the cryptocurrency market. Collect data from many factors including volatility, market size and momentum, social media activity, Bitcoin dominance and Google trends.

Bitcoin Fear and Greed Index showing extreme fear at 24
Cryptocurrency Fear and Greed Index. Source: Alternative.me

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Analysts join the conversation as trust in digital currencies declines

In a post on X (formerly known as Twitter), analyst Rex said that investor interest in the sector had deteriorated to the point of widespread apathy. The current mood seems even more worrisome because it is driven not only by price, but also by a growing disillusionment with long-term crypto narratives.

The analyst noted that even long-time crypto participants are increasingly shifting their focus to stocks And the goods. This indicates a loss of confidence and not just a temporary lull.

“No one wants the angel who invests in this space, no one believes in any of the ridiculous stories … no one cares anymore. It could not be worse emotionally than now … at the bottom of the Covid crisis, people have always believed in this industry, and what we have now is even worse,” he said in a statement. Post .

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However, some investors remain trusting From the team’s return. Analyst Duke has suggested that the sentiment at the current bottom of Bitcoin will probably be worse than… It was after the FTX collapseeven if the actual drop is smaller.

This conviction is based on the belief that cryptocurrencies remain a strong asymmetric investment, with the long-term upside outweighing the downside risks despite the prevailing pessimism.

“I’m not a fan of forecasts, but if I had to choose one – the sentiment at the current bottom of Bitcoin would be worse than after FTX, even if the bottom of Bitcoin is not even close to 2022, and the crypto will once again be the best asymmetric bet in the capital markets. That’s why I’m staying.” He indicated.

In the future, the direction of the market will probably depend on how macroeconomic and geopolitical developments develop in the coming weeks. Until it shows clarity, volatility may be high and sentiment fragile.





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