The Bitcoin Fear and Greed Index dropped to 10, indicating extreme fear. The Extreme Fear Meter indicates growing worry amongst investors and a sharp drop in optimism.
The Greed and Fear Index data reflects the general sentiment in the market. Bitcoin, the Primary Crypto asset, dropped below $90,000 for the first time in 2025.
Other Altcoins followed suit, shedding significant price value over the week. Solana has shed 40.5% of its value, dropping from a peak of $240 last month to $141.
Ethereum shed 26% of its value, dropping from $3,400 to $2,364. Memecoins are in ruins, and the debate for a total ditch of memecoins in the industry is gaining ground.
These are bad times for the crypto market, and the Fear and Greed Index accurately represents the true situation.
Red Season
The crypto market is facing huge turmoil as assets shed price value. The general market downturn is caused by a combination of factors ranging from security breaches to general market dynamics.
This week, the industry witnessed its biggest hack ever. Bybit, a leading exchange, lost $1.46 billion to the now-confirmed Lazarus Group.
This event shook investor confidence, leading to a sell-off that saw Ethereum drop 5% in 24 hours to below $2,700, Bitcoin (BTC) dip 0.8%, and Solana (SOL) fall 9%.
The Hack exposed Centralized exchanges as fallible, reminding everyone that their funds are not really as safe as they thought.
A second contributing factor to the market downturn is the massive outflows in the exchange-traded funds. Bitcoin ETFs have lost over $1 billion in one week. Ethereum ETFs are no better and have shed considerable funds, too.
On a Macroeconomic level, President Donald Trump’s renewed tariff threats, announced on February 24, shook the market, sending prices further down.
These three factors contributed to the market downturn that led to heavyweights like Bitcoin losing significant value.
How does the Greed and Fear Index work?
The Greed and Fear Index is a barometer that measures the general market sentiment.
The Index predicts whether investors are feeling overly fearful or excessively greedy.
The index aggregates multiple data points, typically scored on a scale from 0 to 100, where 0 represents “extreme fear” and 100 signals “extreme greed.”
The Index is designed to reflect how these emotions might drive price movements. Fear often leads to selling and lower prices, while greed can fuel buying and price spikes.
The Index is currently at 10, indicating an extremely fearful market sentiment. The market sentiment presents a buying opportunity for Diamond Hands investors with grit and experience.
