Crypto Fear Index drops to 44 amid retail caution

The crypto market currently reflects a sentiment of "fear," with the Crypto Fear Greed Index registering a score of 44.  

Retail investors in the crypto market are showing record-low confidence, while professional investors remain optimistic, according to Bitwise Chief Investment Officer Matt Hougan.  

Hougan described a "massive disconnect" between the two groups, with retail sentiment being "the worst it’s been in years," while professionals are "extraordinarily bullish."  

The Crypto Fear Greed Index has dropped to a "Fear" score of 44, a sharp decline from last month’s "Greed" score of 69.  

Bloomberg ETF analyst James Seyffart attributes the decline to retail investors holding altcoins and memecoins, which have seen significant losses.  

Pepe (CRYPTO:PEPE) has dropped 35.3%, Shiba Inu (CRYPTO:SHIB) is down 20.8%, and Dogecoin (CRYPTO:DOGE) has fallen 24.7% over the past week, according to CoinMarketCap data.  

Crypto traders have noted the severity of the market downturn, with some calling it one of the worst extended altcoin sell-offs in memory.  

Sentiment appears to vary across different cryptocurrencies.  

Solana (CRYPTO:SOL) has remained popular among retail traders, while Ethereum (CRYPTO:ETH) has seen stronger interest from professional investors, particularly due to its connection to former U.S. President Donald Trump's DeFi project, World Liberty Financial (CRYPTO:WLFI).

Bitcoin (CRYPTO:BTC), which surged past $100,000 in December 2024, has struggled to regain that level following market turmoil linked to Trump's proposed tariffs on Canada, Mexico, and China. 

Although some tariffs were paused after negotiations, Bitcoin remains below the key threshold.