On February 6, 2026, the Fear and Greed Index for the cryptocurrency market dropped to 9 points, the lowest level since June 2022. At that time, the index fell to 7 points due to the notorious collapse of TerraUSD. According to the latest monitoring, the index lost 3 points in one day, 5 points in a week, and 33 points in a month. At the beginning of the year, it reached a local maximum of 61 points, indicating optimistic sentiments among market participants, but the current value reflects panic among investors.
This is reported by Business • Media
Reasons for the Decline and Market Expectations
Experts in the crypto asset market believe that such a decline in the index may indicate the approach of a local bottom and the possibility of a quick recovery. The Fear and Greed Index reflects traders’ sentiments: in the “green” zone, there is a tendency to accumulate assets, while the “red” zone signals panic selling.
“The Fear and Greed Index serves as an indicator of market sentiment. When the index is in the ‘green’ zone, traders tend to accumulate, while in the ‘red’ zone, they tend to sell, even to the point of panic.”
Collapse of TerraUSD and Its Impact on the Market
In June 2022, a similar decline in the index was caused by the sharp collapse of TerraUSD — an algorithmic stablecoin that lost its peg to the dollar. Recovery did not occur, and TerraUSD significantly devalued, leading to the bankruptcy of several major cryptocurrency companies. Terraform Labs co-founder Do Kwon was subsequently sentenced to 15 years in prison.
The current situation, according to experts, differs from the events of 2022 due to the presence of structural support in the market. In particular, this includes the strengthening of the regulatory framework, the launch of Bitcoin ETFs, and Digital Asset Trusts (DATs). There is also potential for liquidity to flow into altcoins in the second half of the year and a gradual global acceptance of cryptocurrencies.
Most market participants now associate the current decline with the macroeconomic situation, but they believe that the likelihood of a recovery in prices is increasing, and positive changes can be expected soon.