Crypto fear index reaches Celsius, Terra, 3AC collapse levels
A key Bitcoin and crypto sentiment tracker, the Crypto Fear Greed Index, has fallen to its lowest score in more than two years as Bitcoin plummeted below $90,000.
On Feb. 26, the Crypto Fear Greed Index slipped deeper into “Extreme Fear,” reaching a score of 10.
Bitcoin falls under $85,000
That’s its lowest level since June 2022, when crypto hedge fund Three Arrows Capital (3AC) started to see its downfall — and just a month after the collapse of Terraform Labs’ Terra (LUNC) and TerraClassicUSD (USTC) tokens, along with crypto lender Celsius pausing all user withdrawals just weeks after its native token Celsius ( CEL ) dropped 90% .
While there were no major crypto collapses ahead of the sentiment plunge on Feb. 26, many observers have blamed heightened macroeconomic uncertainty.
The sentiment indicator first entered the “Extreme Greed” territory the day prior, on Feb. 25. That’s when Bitcoin ( BTC ) dropped below $90,000 for the first time since November, after US President Donald Trump said a day earlier that his planned 25% tariffs on Canada and Mexico “are going forward on time, on schedule.” More recently, Trump said during a Feb. 26 cabinet meeting that he will also be imposing a 25% tariff on the European Union.
At the time of publication, Bitcoin is down 17.32% over the past 30 days, trading at $84,408, according to CoinMarketCap data.
Bitcoin is trading at $84,940 at the time of publication. Source: CoinMarketCap
It bears a resemblance to June 19, 2022, when the index dropped to 6 as Bitcoin tumbled to $19,000, having lost 37% over 30 days.
Related: Bitcoin price enters generational buying territory — Should traders expect more downside?
At the time, the downfall was largely attributed to the collapse of the TerraUSD stablecoin, which lost its peg to the US dollar (USD) on May 9, 2022. Panic selling wiped out a combined $60 billion from the crypto ecosystem.
The impact rippled through the entire crypto industry. 3AC faced insolvency fears on June 16 after it failed to meet margin calls from its lenders . 3AC was ordered into liquidation on June 27 . On July 13, Celsius entered into bankruptcy proceedings.
Analysts weigh in on fearful crypto sentiment
Collective Shift founder Ben Simpson told Cointelegraph that the current market conditions could present a buying opportunity for crypto investors.
“The Simple strategy over the past few years has been to buy during extreme fear and sell during Greed,” Simpson said.
“If you’ve done that, you’ve really outperformed the market and probably outperformed most traders,” Simpson said.
He explained that the crypto market’s negative sentiment comes from high expectations following Donald Trump’s inauguration not being met:
“There is not much to be hopeful or excited about at the moment. Everyone had put a lot of confidence in Donald Trump to push his crypto angle, but at the moment, he is busy doing other things.”
Echoing a similar sentiment, Swyftx lead analyst Pav Hundal told Cointelegraph that “it is an unforgiving environment right now, and it’s draining confidence.
”The next few weeks could be rocky, but global liquidity levels have been rising week-on-week, and historically, that is a leading indicator for Bitcoin. March is shaping up to be an important month,” Hundal said.
Magazine: Elon Musk’s plan to run government on blockchain faces uphill battle
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Top Altcoins to Buy in 2025: BlockDAG, Solana, Cardano, and Avalanche Could See Strong Growth
Explore top altcoins to buy now like BlockDAG, Solana, Cardano, and Avalanche. See what makes them stand out and their potential in 2025.2. Solana’s Speed and Market Data Insights3. Cardano’s Smart Contract Strengths to Explore4. Avalanche (AVAX) Market Overview and Network CapabilitiesTop Altcoins to Buy in 2025: A Summary of Choices

SUI’s Price Jump, Polkadot’s Bullish Signals, and the 2700% ROI Potential of Unstaked’s Stage 12 AI Crypto: Just $0.008997?
Witness the SUI price prediction climb, Polkadot form bullish patterns, and Unstaked AI presale surge with 2,700% ROI potential as the top crypto pick for 2025.Polkadot Eyes Breakout from Bullish WedgeUnstaked Turns AI From a Buzzword Into a Business EngineThe Path Ahead

Next Crypto to Explode: BTFD Coin Raises $7M With 200% Bonus Still Live—Whales Are All In as $CAT and $SNEK SlideFind Out More:
$CAT and $SNEK dip, while BTFD Coin preps for liftoff—is this the next crypto to explode?BTFD Coin: The Referral Gold Rush Fuelling the Next Crypto to ExplodeSnek ($SNEK): Can This Cardano Creature Strike Back?Simon’s Cat ($CAT): Nine Lives, But Losing One Fast?Time’s Almost Up: BTFD Coin’s Presale Ends May 26

Jetcraft Now Accepts Bitcoin for Private Jet Payments
Private jet giant Jetcraft now accepts Bitcoin and crypto, signaling growing luxury adoption.Billionaires Are Buying Jets with BitcoinA Bold Shift in Luxury SpendingWhat This Means for Crypto Adoption

Trending news
MoreCrypto prices
More








