Crypto Fear & Greed Index dropped

Let that sink in 👇
This is lower than:

The tariffs crash

The August 2024 crash

The FTX collapse

The 2020 COVID panic
We are officially in extreme, historic fear territory
But here’s the uncomfortable question:
If fear is worse than during FTX, worse than Luna, worse than a global lockdown…
what exactly is the market pricing in right now?
Capitulation doesn’t happen when people feel a bit nervous.
It happens when confidence is completely gone
Sentiment is at levels that have historically marked major bottoms
Not because the news improves but because sellers eventually run out.
Fear at 5 means:

Retail is exhausted

Weak hands are shaken

Liquidity is thin

Volatility expansion is near
The crowd feels safest at tops.
The crowd feels terrified at bottoms.
This is the part of the cycle that tests conviction.
The question isn’t whether fear is high.
It’s whether you understand what extreme fear has historically meant for the next phase.