The Fear & Greed Index just hit 23. How long will this wave of market trend last before it stabilizes?

The sentiment in the crypto market has once again hit rock bottom. According to the latest data from Alternative.me, the Fear & Greed Index has dropped to 23, down from 20 yesterday. Although rising from 20 to 23 might seem like a slight increase, don’t be fooled by this small number—both values are firmly in the “Extreme Fear” zone.

In simple terms, the current mindset of market participants is one word: cowardly. Investors are either waiting on the sidelines for a bottom or simply withdrawing altogether. An extremely fearful market environment usually indicates a polarization—some see opportunities and are quietly accumulating, while others are so scared they are clearing out their positions.

The Fear & Greed Index is a tool used to quantify market sentiment. When it oscillates in the very low range, it indicates that fear dominates the market, and rational voices are largely drowned out. This is often also a window of opportunity for large funds to quietly position themselves. However, for retail investors, it’s crucial to stay calm in such extreme fear, and not let emotions dictate their actions.

No one can predict how much further this market decline will go before it turns around. But one thing is certain: as long as the greed index remains at this level, the market’s bottom consensus has not yet formed.