KEY TAKEAWAYS
- The Fear & Greed Index hit 15, a level linked with panic selling.
- About $2.2B in liquidations showed forced exits across major tokens.
- Funding rates, exchange inflows, and holder cost levels give clearer context than sentiment alone.
- Where is the biggest crypto opportunity right now?
Extreme fear has returned to crypto markets as prices fell sharply and liquidations surged. On-chain data and derivatives metrics confirm heavy stress across the market.
The Crypto Fear & Greed Index dropped to 15 this week, placing sentiment firmly in Extreme Fear territory.
Bitcoin slid to $76,000, Ether fell to $2,200, and total liquidations reached about $2.2B within 24 hours, reflecting intense selling pressure.
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Fear Index Signals Panic Selling
The Fear & Greed Index blends volatility, volume, momentum, dominance, and social sentiment into a single score. A reading of 15 points to widespread fear and reduced risk appetite.
Similar readings often appear when traders rush to cut losses and avoid further downside. Still, the index reflects emotion, not direction.
Extreme fear can last longer than expected, especially when prices keep breaking support levels.
What Triggered The Capitulation
Bitcoin fell to $76,000 while Ether dropped 12% in a single day to $2,200. Exchanges recorded about $2.2B in liquidations as leveraged long positions closed rapidly.
Open interest declined, showing traders reduced exposure rather than added new bets.
Funding rates turned negative, which made long positions more expensive to hold.
On-chain data also showed rising exchange inflows, meaning more coins moved to exchanges for sale.
Glassnode data shows weakness in short-term holder cost bands, which often act as support during stable periods.
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How To Read The Signals Clearly
Sentiment alone does not give enough information. Combine it with four simple checks.
- Daily Fear & Greed trend
- Funding rates and open interest
- Exchange inflows
- Short-term holder cost levels.
When all four show stress, the market likely sits in a deeper capitulation phase. Mixed signals suggest uncertainty and ongoing volatility.
Conclusion
Crypto markets show clear signs of capitulation, with extreme fear, $2.2B in liquidations, and negative funding. Use sentiment alongside price and on-chain data for clearer decisions.
Where Is The Biggest Crypto Opportunity Right Now?
Before you invest in Bitcoin, you’re going to want to read our next premium crypto alert which will be published in the coming days. We will reveal key crypto assets to consider in 2026 with explosive potential.
Since 2017, InvestingHaven’s blockchain research service has been guiding investors through both bull runs and crypto winters.
