Overview
- The Crypto Fear & Greed Index registered 20 on December 26, marking 14 consecutive days in Extreme Fear, a longer run than during the FTX collapse, according to Alternative.me.
- Bitcoin trades near $88,000 with roughly 1.4% 24-hour volatility and has largely moved sideways after earlier declines, extending a consolidation phase noted through the week.
- Market analysts highlight the absence of capitulation signals such as volatility spikes, forced liquidations, and strong volume expansion, cautioning that fear alone is not a reliable buy trigger.
- Risk appetite remains narrow, with the Altcoin Season Index at 18 indicating a preference for Bitcoin over higher‑beta tokens and a declining market cap excluding BTC and ETH.
- Liquidity and positioning metrics show caution, with flat to slightly negative perpetual funding, lower open interest, and subdued spot volumes relative to earlier in the year.