The Crypto Fear & Greed Index primarily tracking Bitcoin and broader crypto sentiment has hit a reading of 5 out of 100 in February 2026, marking its lowest level in history based on multiple sources tracking the index since its inception around 2018.
This extreme fear level anything below ~25 is “Extreme Fear” occurred multiple times this month: First on or around February 6, 2026, when Bitcoin bottomed near $60,000 during a sharp 52% drawdown from its all-time high of approximately $126,000 reached in late 2025.
It returned to 5 more recently (as of February 23, 2026, per alternative.me coinciding with renewed selling pressure. As of the latest available data: The index stands at around 8 still deep in Extreme Fear territory, up slightly from yesterday’s 5.
Bitcoin is trading in the low-to-mid $63,000 range around $63,000–$64,000, down significantly year-to-date roughly -25–28% amid ongoing outflows from U.S. spot Bitcoin ETFs, deleveraging in derivatives markets, liquidations, and broader risk-off sentiment influenced by macroeconomic factors like tariff uncertainties and geopolitical tensions.
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Historically, such ultra-low readings; 5 has only appeared a handful of times: e.g., August 2019, June 2022, and now multiple points in February 2026 often signal capitulation — widespread panic selling where weak hands exit, sometimes marking local bottoms or setting up for strong reversals.
Analysts frequently view these as contrarian buy signals, with past extreme fear periods preceding violent rallies. However, the market can stay oversold longer than expected, and further downside remains possible if outflows and deleveraging continue.
This is a classic “blood in the streets” moment for crypto sentiment, but whether it proves to be the ultimate bottom depends on incoming catalysts like ETF flows reversing or macro improvements. Extreme fear doesn’t guarantee an immediate bounce, but it does indicate the market is pricing in a lot of bad news already.
This level reflects extreme capitulation — widespread panic, forced selling, and a near-universal bearish outlook among retail and leveraged participants. The index has rebounded slightly to around 8–11 still firmly in Extreme Fear territory.
It previously touched 5 multiple times this month; February 5–6 and again recently around February 23, marking the deepest sentiment low since the index began tracking in 2018. Bitcoin is trading in the low-to-mid $63,000 range down sharply from its late-2025 all-time high near $126,000 — a roughly 50%+ drawdown.
The market has seen prolonged extreme fear heavy long liquidations (hundreds of millions recently), ongoing U.S. spot Bitcoin ETF outflows, and macro pressures like renewed tariff uncertainties contributing to risk-off sentiment.
Extreme fear readings like this have often coincided with or preceded major market bottoms in Bitcoin’s history. Past examples include: June 2022 near 6–10 during Terra and Luna and broader bear market lows ? followed by a multi-year bull run.
Late 2018 early bear phases ? capitulation led to strong recoveries. Even milder fear dips (e.g., FTX collapse at ~12) marked local bottoms. A score this low suggests much of the “weak hands” have already sold, oversold conditions prevail, and bad news is largely priced in.
Many analysts view it as a classic “buy when others are fearful” moment (echoing Warren Buffett’s philosophy, which the index explicitly references). Some projections now target $150,000+ by end-2026 or higher in 2027 if a reversal materializes.
Potential for Further Downside (Risks Remain)
The market can stay irrational longer than expected. Extreme fear doesn’t guarantee an immediate bounce — it can persist or deepen if catalysts worsen. Technicals show Bitcoin testing key supports around $60,000–$63,000, with some bearish patterns suggesting possible extensions toward $50,000–$55,000 in a worst-case scenario before true capitulation ends.
High liquidation volumes mostly longs and “Bitcoin is dead” search spikes indicate peak panic — often the point where smart money accumulates quietly while retail exits. Low sentiment can lead to explosive upside once sentiment flips via positive ETF inflows, macro relief, or halving cycle momentum carryover.
On-chain and analyst data suggest long-term holders are still buying dips, not selling — a bullish divergence amid the fear. Technical breakout above recent resistance like $67,000–$70,000. Even a modest uptick in the index as seen from 5 ? 8–11 recently can snowball if paired with price stability.
A Fear & Greed Index at 5 is one of the strongest contrarian indicators in crypto — historically screaming “oversold” and often marking inflection points. However, it’s not foolproof; timing bottoms is notoriously hard, and patience may be required amid ongoing volatility.
This remains a high-risk, high-reward environment — always do your own research, manage risk, and avoid over-leveraging. If history is any guide, these “blood in the streets” moments have rewarded those who stay disciplined through the fear.