On February 6, 2026, the Fear and Greed Index in the cryptocurrency market dropped to 9 points, marking the lowest level in recent years. For the first time since June 2022, the market is exhibiting such a high level of pessimism among participants.
This is reported by Finway
Index Dynamics and Market Events Impact
In the last 24 hours, the index fell by 3 points, by 5 points over the week, and by a total of 33 points in the month. Since the beginning of 2026, the index reached a local maximum of 61 points, reflecting stable optimism among investors. However, the current value indicates a dominance of fear in the market. The Fear and Greed Index serves as an important indicator of market sentiment: being in the “green” zone usually signals investors’ desire to accumulate assets, while the “red” zone indicates a tendency towards mass selling.
“On February 6, 2026, the Fear and Greed Index in the crypto asset market dropped to 9 points, according to Alternative. This is a new low since June 2022, when the index plummeted amid the collapse of the algorithmic stablecoin TerraUSD.”
The last time the index reached a similar level was in June 2022, when it even fell to 7 points. At that time, the main reason for the pessimism was the collapse of the stablecoin TerraUSD – an asset that lost its peg to the dollar and triggered the bankruptcy of many crypto companies. The co-founder of Terraform Labs, Do Kwon, which developed TerraUSD, was sentenced to 15 years in prison.
Recovery Prospects and Influencing Factors
According to market participants, such a low index value may indicate the approach of a local bottom. This increases the likelihood of a short-term market recovery. Experts cite the macroeconomic situation as the main reason for the sharp decline; however, the current crisis differs from that of 2022.
Unlike the past, the market now has structural support, such as regulatory frameworks, the launch of exchange-traded funds (ETFs), and digital assets (DATs). There is also a forecast for a possible flow of liquidity into altcoins in the second half of the year and a gradual global acceptance of cryptocurrencies. This could lay the groundwork for a rapid recovery after reaching the bottom.
Change in the Fear and Greed Index in the crypto asset market. Source: Alternative.