Good afternoon.

Today I had planned to write a bit more about the behavior of the Crypto Market. But while organizing my ideas for it, I found that in many writings the term crypto fear or Fear in the Crypto Market was mentioned. I decided to find out why it is called the Market of Fear in the Crypto Market. I found the following, which I found quite interesting.

It is commonly said that the Crypto Market is the "market of fear" (or is dominated by fear) due to the combination of psychological, technical, and economic factors that are not usually seen with such intensity in traditional markets. All of this for the following reasons.

1. Extreme Volatility (The "whirlwind")

Unlike the stock market, where a 5% drop is a national tragedy, in the crypto world it is "just another Tuesday."

* The effect: Seeing how your savings lose 20% of their value in one afternoon generates a biological panic response. This constant fear of sudden loss keeps investors in a state of perpetual alert.

2. The "Fear and Greed" Index (Fear & Greed Index)

There is a very famous tool that measures market sentiment on a scale from 0 to 100:

* Extreme Fear (0-25): Means that investors are very worried. Ironically, for experts, it is often a buying opportunity. This index is a tool that measures emotions and market sentiment, commonly used for cryptocurrencies.

* Extreme Greed (75-100): Means that the market is euphoric and is likely due to a bubble that will soon burst. As the indicator often spends a lot of time in the "Fear" zone during corrections (like the one we are seeing these last three days), it is directly associated with that emotion. Extreme greed is to extreme fear what White is to Black.

3. Fear of Regulation and the Unknown (FUD)

In the crypto ecosystem, there is a term called FUD (Fear, Uncertainty and Doubt).

* Investors constantly fear that a government will ban crypto, that a major exchange will go bankrupt (as happened with FTX), or that a protocol will be hacked. As it is a relatively new and less regulated market, the perceived risk is higher.

4. Fear of Missing Out (FOMO)

The fear is not only about losing money but also about not making it. The Fear Of Missing Out (FOMO) drives people to buy when the price is already very high out of fear of missing the opportunity of a lifetime. When the bubble bursts, that FOMO quickly turns into panic selling.

5. The lack of a clear "Intrinsic Value"

Unlike a company that has factories, employees, and products (like Apple or Tesla), the value of many cryptocurrencies depends purely on trust and narrative. If trust breaks, fear spreads much faster because there is no physical "floor" to support the price.

In summary: It is called that because it is a market that amplifies human emotions. While in other markets one invests with the head, in crypto one often invests with the stomach, and fear is the emotion that most quickly leads people to make decisions (often wrong ones). That is, in the Crypto Market, one lives off fear and either wins or loses from fear.

Lower values (close to 0) represent extreme fear, while higher values (close to 100) indicate extreme greed.

Extreme fear suggests that investors are very worried and may be selling, which could indicate a potential buying opportunity.

On the contrary, extreme greed suggests that the market could be overheated and susceptible to a correction.

To help users, different platforms have created indicators of the Fear and Greed Index (Fear & Greed Index), which at this moment 03-02-2026 is at the mark 17, indicating a level of "extreme fear" in the market. This helps investors make more informed decisions by understanding the overall mood of the market.

Today the Crypto Market is in Extreme Fear and has been for a few days now as the volatility and the decline of its main currencies $BTC $ETH , etc. have retreated to values from the year 2024.

In light of what has been described, I am attaching two images that show the graphical interface of applications to measure or create your fear indicators or fear and greed indices that they use.

To conclude, I ask the following:

Do you feel that the current sentiment of $75,000 - $77,000 in Bitcoin is of "extreme fear" or do you think there is still hope for a rebound?

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