Foreign media commentators believe that cryptocurrency market sentiment has fallen to one of the most pessimistic levels in this cycle. The Fear & Greed Index recently dropped to 13, placing it in the "extreme fear" zone. The article states that such readings have appeared near cyclical lows multiple times in the past, but whether this will repeat itself depends on whether liquidity can stabilize.

The index fell into a zone of extreme fear.

This indicator measures market sentiment, ranging from 0 to 100. A lower value indicates greater pessimism, while a higher value indicates stronger risk appetite. A reading of 13 is near the bottom of the range, indicating significantly weak market sentiment.

The article mentions that this indicator typically combines factors such as price volatility, trading momentum, social media sentiment, search trends, and Bitcoin market share to reflect the overall risk appetite of market participants, rather than the fundamentals of the asset itself.

The two previous low readings were close to the low point.

Foreign media outlets have noted that the market also experienced extreme fear readings in April 2025 and February 2026, followed by periods of recovery. Therefore, the latest drop to 13 is seen by some analysts as a signal that the market is approaching a "sentiment clearing."

The article's core argument is that when panic reaches its peak, a significant amount of passive selling, leveraged liquidation, and short-term selling has already been released. Once selling pressure eases, prices are more likely to rebound as long as buying pressure returns.

ETF fund flows remain to be seen.

From a market performance perspective, Bitcoin is currently hovering around $60,000, with a cumulative decline of approximately 22% since 2026. Ethereum's single-quarter decline is close to 29%. Altcoins are under pressure overall, with Cardano once hitting multi-year lows, indicating a significant contraction in market risk appetite.

The article also mentions that continued outflows from Bitcoin ETFs have weakened institutional demand, which is one of the variables that needs to be closely monitored compared to previous lows. If capital outflows continue, even if sentiment indicators are in extreme ranges, a recovery may not be immediate.

Furthermore, the market has recently shown a clear divergence. The article states that some funds have not completely withdrawn from risky assets, but rather have concentrated in a few relatively strong performers, such as Hyperliquid and certain AI tokens. This suggests that the current situation is more of a selective contraction than an indiscriminate sell-off.

Overall, foreign media believe that the VIX's drop to 13 has once again brought the market into a historically pessimistic range. Whether it will correspond to a temporary low as it has twice before depends on ETF fund flows, whether leverage clearing has ended, and whether buying interest can return to mainstream assets.