The Crypto Concern and Greed Index fell to 24 on January 21, 2026, signaling a pointy return to excessive concern after briefly getting into greed territory final week.
Market sentiment has deteriorated sharply as cryptocurrencies face one other main drawdown amid escalating geopolitical tensions.
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Crypto Market Sentiment Collapses Into Excessive Concern
BeInCrypto reported earlier this week that President Trump’s tariff threats in opposition to the European Union sparked a wider market sell-off, weighing closely on threat property. The strain intensified on Tuesday.
Talking at Davos, US Treasury Secretary Scott Bessent reaffirmed the Trump administration’s readiness to deploy tariffs as a main geopolitical instrument, a stance that additional unsettled world markets.
BeInCrypto Markets information confirmed that Bitcoin (BTC) fell under the $90,000 stage, even briefly dipping below $88,000. Ethereum (ETH) additionally dropped below $3,000.
The general sell-off erased greater than $120 billion from the whole cryptocurrency market capitalization over the previous 24 hours.
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Derivatives markets mirrored the severity of the transfer, with widespread pressured liquidations. Greater than 182,000 merchants have been liquidated prior to now day, pushing whole liquidations to $1.08 billion. Lengthy positions accounted for $989.9 million of the losses.
The sharp sell-off has additionally weighed closely on investor sentiment. The Crypto Concern and Greed Index dropped to 24 at this time. This marks a return to excessive concern after the market reached greed territory at 61 simply final week, on January 15.
“Danger-off is again. Capital is working for security,” a market watcher wrote.
The index supplies a broad snapshot of crypto market psychology. It aggregates information from a number of elements, together with volatility, market quantity and momentum, social media exercise, Bitcoin dominance, and Google Developments.
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Analysts Weigh In as Crypto Confidence Weakens
In a put up on X (previously Twitter), analyst Rex mentioned investor curiosity within the sector has deteriorated to the purpose of widespread apathy. The present temper appears much more worrying as a result of it’s pushed not solely by value however by rising disillusionment with crypto’s long-term narratives.
The analyst famous that even long-time crypto individuals are more and more shifting their focus to shares and commodities. This means a lack of confidence moderately than only a short-term lull.
“Nobody needs to make angel investments on this area, nobody believes any of the bullshit narratives.. Nobody cares anymore. It actually can’t get any worse for sentiment than proper now.. Backside of the COVID crash individuals nonetheless believed on this trade, what now we have now could be worse,” the put up learn.
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Nonetheless, some buyers stay assured a couple of comeback. Analyst Doc urged that sentiment at Bitcoin’s precise backside will probably be worse than after the FTX collapse, even when the present drawdown is smaller.
This conviction is predicated on the assumption that cryptocurrency stays a strong uneven funding, with long-term upside outweighing draw back threat regardless of prevailing pessimism.
“I’m not a giant predictions man, but when I needed to choose one- sentiment on the precise BTC backside will probably be worse than post-FTX regardless of the bitcoin drawdown not even coming near 2022 and crypto will as soon as once more be the most effective uneven guess in capital markets. That’s why I’m staying,” he famous.
Trying forward, market course will probably hinge on how macroeconomic and geopolitical developments evolve within the coming weeks. Till readability emerges, volatility might stay elevated and sentiment fragile.