Crypto News: Crypto Sentiment Stuck in ‘Extreme Fear’ for 14 Consecutive Days Despite Bitcoin Holding Near $90K

Crypto market sentiment has remained entrenched in “extreme fear” for the 14th consecutive day, underscoring a deep disconnect between price levels and investor psychology.According to the Crypto Fear & Greed Index, sentiment dropped three points to 20 out of 100 on Dec. 26, extending one of the longest sustained periods of extreme fear since the index was launched in February 2018.Sentiment Weaker Than During the FTX CollapseNotably, the current reading is lower than levels seen during the collapse of FTX in November 2022, a period widely considered one of the most traumatic events in crypto history.This comes despite Bitcoin trading near $88,650, roughly five times higher than prices during the FTX fallout, and only about 30% below its all-time high of $126,080 set on Oct. 6, according to CoinGecko data.The index aggregates multiple inputs, including price volatility, trading volume, social media sentiment, trend data, and Bitcoin dominance, to gauge overall market psychology.Macro Fears Continue to Weigh on Crypto ConfidenceMarket sentiment has trended steadily downward since early October, after renewed U.S.–China tariff concerns erased nearly $500 billion from total crypto market capitalization on Oct. 10.Additional pressure has come from uncertainty around U.S. Federal Reserve policy, with growing fears that the Fed may pause interest-rate cuts in early 2026. Jeff Mei, chief operating officer at crypto exchange BTSE, warned earlier this week that Bitcoin could slide toward $70,000 if rates remain unchanged.Retail Participation Shows Signs of RetreatOn-chain analytics firm Alphractal reported that crypto-related search interest has dropped sharply, citing declines in Google search volume, Wikipedia page views, and online forum discussions.“Crypto social volume has returned to levels typically seen during bear markets,” Alphractal noted, adding that retail investors appear increasingly disengaged and discouraged as December progresses.Bitwise: Crypto-Native Retail Sitting Out the MarketBitwise chief investment officer Matt Hougan previously attributed the weak sentiment to “crypto-native retail” stepping away after a series of damaging events.He cited the lingering effects of the FTX collapse, memecoin failures, the absence of a sustained altcoin season, and the Oct. 10 liquidation event, which collectively eroded confidence among long-time retail participants.“Crypto-native retail is depressed,” Hougan said, arguing that many have chosen to stay sidelined rather than re-enter volatile markets.Institutional Flows Tell a Different StoryIn contrast, Hougan noted that traditional finance retail and institutional investors remain active, pointing to the continued inflows into U.S. spot crypto exchange-traded funds.Despite Bitcoin posting a 5% year-to-date decline, U.S.-listed Bitcoin ETFs have attracted more than $25 billion in net inflows in 2025, highlighting a growing divergence between professional capital and retail sentiment.Fear May Be a Contrarian SignalHistorically, prolonged periods of extreme fear have often coincided with market bottoms rather than tops, though analysts caution that macro uncertainty and thin year-end liquidity could keep volatility elevated in the near term.For now, the crypto market remains caught between institutional accumulation and retail disengagement, with sentiment metrics flashing warning signs even as prices stabilize well above historical bear-market lows.