Crypto Market Shows Longest Fear Streak Since 2018
Crypto market sentiment remained in “extreme fear” on Friday, marking the 14th consecutive day in the zone. The Crypto Fear & Greed Index dropped three points to a score of 20 out of 100 on Dec. 26, continuing a streak that began on Dec. 13. This is among the longest periods of extreme fear since the index launched in February 2018.
Factors Driving Market Sentiment
Analysts note that market sentiment has been declining since early October, following renewed US-China tariff concerns, which wiped nearly $500 billion from the crypto market on Oct. 10. Additionally, fears that the US Federal Reserve may pause rate cuts in Q1 2026 may be weighing on investor confidence. Jeff Mei, chief operating officer of crypto exchange BTSE, warned last Monday, “Bitcoin could fall to $70,000 should the Fed keep rates steady.”
Bitcoin is currently trading around $88,650, nearly 30% below its all-time high of $126,080 set on Oct. 6, according to CoinGecko. Interestingly, the current fear index score is even lower than levels seen during FTX’s collapse in November 2022, which had pushed Bitcoin toward $16,000.
Declining Retail Interest and Social Activity
Crypto search volumes and online discussions have also fallen. Alphractal noted that Google searches, Wikipedia views, and forum activity are back to levels typical of bear markets. “Retail investors appear discouraged, disengaged, and largely absent from the crypto market,” the platform reported.
Bitwise chief investment officer Matt Hougan attributed the sentiment drop to “crypto-native retail.” He explained, “They were beaten down by FTX, the memecoin debacle, and the altcoin season not arriving. They got hurt on the 10/10 liquidation, and I think they’re just sitting this one out.”
Meanwhile, traditional retail appears more active, with US Bitcoin ETFs attracting over $25 billion in inflows in 2025 despite Bitcoin posting a 5% year-to-date loss. Hougan highlighted, “Traditional retail, like my uncle, he’s moving into crypto; that part of retail is still alive.”
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