The market sentiment indicator has fallen to 16 - this is a noteworthy signal.

According to the fear and greed index of a certain mainstream platform, today's reading has dropped to 16, categorized as "extreme fear". Compared to yesterday's 20, the decline is quite significant. This change directly reflects the overall sentiment in the cryptocurrency market at present: cautious, wait-and-see, and even a bit anxious.
Why is this happening? There are several possible reasons. On one hand, some negative news circulating in the market has shaken the confidence of some investors; on the other hand, if prices continue to fall, people naturally feel uncertain—once selling behavior triggers a chain reaction, panic will grow like a snowball.
What should ordinary investors do in the face of this situation?
First, don't rush to follow the trend. When you see the words "extreme panic", panicking and liquidating your assets haphazardly is often not a wise move. Investment itself is accompanied by volatility; fluctuations are the norm. What you really need to do is to calm down and think: do the assets in your hands still hold value in the long term? If the fundamentals haven't changed, short-term fluctuations might be opportunities rather than disasters. The cost of impulsive decisions could be missing out on subsequent rebounds.
Of course, if you assess that you cannot withstand this wave of pressure, then it is also acceptable to reduce your position appropriately. Transferring part of your funds to a more stable place and waiting for the market sentiment to recover and the direction to become clear before re-establishing your positions is also a strategy.
The key is: stay rational and act according to your risk tolerance. The market will not stop fluctuating because of your panic, but you can choose to respond to it in a calmer way.