Bitcoin (CRYPTO: BTC) and the broader crypto ecosystem are navigating a fresh wave of risk aversion as the Crypto Fear and Greed Index retreats to extreme fear territory. The gauge sits at 18, down from 20 on Friday, after a brief midweek uptick to 25 before sentiment cooled again amid escalating geopolitical frictions and macro uncertainty. The retreat underscores a phase of cautious trading, with liquidity tightening and volatility increasing as investors weigh a bear market that has stretched since late 2025. While BTC has faced a severe downdraft, the broader altcoin sector has suffered disproportionately, highlighting a liquidity squeeze that has yet to fully reverse.
Key takeaways
- The Crypto Fear and Greed Index is at 18,…
