Sentiment across the cryptocurrency market has dropped to one of its lowest levels in several years, according to the widely followed Crypto Fear and Greed Index. The indicator recently recorded a reading of 12, signaling extreme fear among investors and marking 38 consecutive days in that category.

Market observers say the current streak represents the longest sustained period of extreme fear since the dramatic collapse of the Terra and Luna ecosystem in May 2022. The prolonged pessimism highlights growing caution among cryptocurrency traders and investors as global financial markets face increased uncertainty.

Although the digital asset sector has experienced numerous cycles of optimism and decline, analysts say the current sentiment…