The Greed Index drops to 32, the cryptocurrency market enters a state of fear

LazyDevMiner · 2026-01-26T03:30:44+00:00

The Fear and Greed Index for the cryptocurrency market has sharply declined to 32, indicating a state of fear among investors. This decrease follows a peak of 61, reflecting a cautious sentiment as investors shift from greed to a more protective stance. The index's historical fluctuations highlight the volatility of the crypto market.

LazyDevMiner

2026-01-26 03:30:44

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Data from the analysis platform Alternative.me shows that in the past week, the Cryptocurrency Market Fear & Greed Index has experienced a significant weakening. Currently, the index stands at 32, indicating that the market remains in a “Fear” state, reflecting cautious investor sentiment amid market volatility.

Fear & Greed Index Continues to Decline After Peak of 61

Over the past 7 days, the index has steadily declined from its recent peak of 61 last week. The drop from 44 (compared to yesterday) to the current 32 indicates a strong downward trend, clearly showing a shift in market sentiment. This decline reflects investors gradually moving away from greed and adopting a more cautious stance.

Historical Volatility: From Extreme Levels

Looking at recent history, the index was at 26 a week ago, while a month prior, it dropped to 20 — a level called “Extreme Fear,” lower than the current fear level. These fluctuations demonstrate that the market has gone through various psychological phases, from extreme greed to extreme fear, highlighting the volatile nature of cryptocurrencies.

Index Structure: Multi-Dimensional Market Reflection

The Fear & Greed Index is built from multiple components on a 0-100 scale. Specifically, it includes: Price volatility (25%), Market trading volume (25%), Popularity on social media platforms (15%), Market survey results (15%), Bitcoin’s proportion of total market capitalization (10%), and trending keyword analysis from search engines like Google (10%). This multi-faceted approach allows the index to provide a comprehensive view of the community’s greed or fear in the cryptocurrency market.

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