Market sentiment hits new lows again, with the panic index dropping to 20, reaching a new extreme panic record

2026-01-01 02:34:09

【Crypto Rhythm】Latest data shows that the Cryptocurrency Fear and Greed Index on January 1st has dropped to 20, lower than the previous day’s 21, indicating that the market has already fallen into a state of “Extreme Fear.”

How is this index calculated? In simple terms, it combines six key dimensions: volatility (the largest at 25%), trading volume (also 25%), social media buzz (15%), market surveys (15%), Bitcoin’s dominance in the entire crypto market (10%), and Google search trend analysis data (10%).

What do these numbers reflect? When the index continues to decline within the range of 0-100, especially dropping into extreme values like 20, it indicates not only intense market volatility and low trading activity but also a decline in public sentiment and market participation. Investors’ anxiety has spread from on-chain data and trading behaviors to discussions across the entire ecosystem.

BTC1,75%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

9 Likes

Reward
9
7
Repost
Share

Comment

0/400

DaoGovernanceOfficer

· 01-01 03:03

ngl the methodology here is kinda sus... 25% volatility + 25% volume weighting just captures the same underlying fear twice, empirically speaking. where's the actual on-chain sentiment data? this index feels like decentralization theater for metrics

Reply0

LiquidatedTwice

· 01-01 03:03

The number 20 is truly incredible, it feels like the entire market is screaming. Everyone is afraid to move, this is real panic. The index is so low, it means there's no discussion left, people's hearts are scattered. In times of extreme panic, maybe it's time to buy the dip? How much further will this drop, it's crashing quite hard. Trading volume has dried up to this extent, we're probably not far from the bottom. Numbers can be deceptive, but the market's silence is even more frightening. 20 points remind me of the last bloodbath, it's exhausting. Participation has completely collapsed, this is the most dangerous signal.

View OriginalReply0

GrayscaleArbitrageur

· 01-01 02:57

The number 20 is just one step away from 0, I really can't hold it anymore. Wait, is this the signal to bottom out? History is about to repeat itself. What does extreme panic indicate... It means the big players should start accumulating chips, haha. I'm wondering if this index can continue to fall after dropping to 20, it feels like it's already bottomed out. This wave really scared a lot of people, but smart people should be laughing, right?

View OriginalReply0

WalletInspector

· 01-01 02:53

The number 20 is truly incredible; this wave of the panic index has directly hit the floor. Retail investors are probably trapped and questioning their lives... I'm not panicked with the index so low; it's often when the real opportunity arises. Trading volume shrinking so drastically, it feels like a cleansing wave is necessary.

View OriginalReply0

PaperHandsCriminal

· 01-01 02:45

VIX 20? Haha, anyone buying now is a true braveheart. I really can't sell anymore. What does such a low index mean? It means people like me have already cut all their losses. Volatility, trading volume, and social media buzz have all collapsed. It feels like no one is even discussing this anymore. Falling from 0-100 to 20, doesn't that mean everyone is scared? Including me. This extreme panic might actually be an opportunity. It all depends on who can hold on until then.

View OriginalReply0

Hash_Bandit

· 01-01 02:41

ngl, 20's basically the network's way of saying "difficulty just reset to zero" — when everything's that quiet, that's usually when the real miners start accumulating. been here before, this bleeding phase never lasts forever tbh

Reply0

SolidityNewbie

· 01-01 02:41

Index 20? These are all tricks to trap retail investors; the bottom signals are becoming more and more obvious.

View OriginalReply0