The Crypto Fear and Greed Index drops to its lowest point in history, and market sentiment remains bearish.

Odaily Planet Daily reports that data shows the Crypto Fear & Greed Index dropped to 5 on February 12, reaching an all-time low, reflecting a continued deterioration of market sentiment over the past few months. Even though institutional funds are still actively deploying in the DeFi sector, overall risk appetite remains significantly reduced.

The index combines indicators such as market volatility, momentum, social media activity, market dominance, and search trends to gauge market sentiment, with a scale from 0 (extreme fear) to 100 (extreme greed). The current reading indicates the market has entered an extreme fear zone.

Analysts believe that the persistent weakening of sentiment is closely related to the October 10, 2025 (“10/10 event”). On that day, the crypto market experienced its largest liquidation event in history, with over $19 billion in leveraged positions forcibly liquidated within 24 hours, involving more than 1.6 million accounts. Bitcoin fell approximately 14% that day, and altcoins suffered even more severe declines, exposing liquidity shortages in the derivatives market and structural risks associated with high leverage. Market confidence has not yet fully recovered.