On February 12, 2026, the Crypto Fear & Greed Index hit a historic low of 5, signalling extreme fear in the market, according to The Block’s Data and Insights newsletter. This composite gauge, aggregating volatility, market momentum, social media activity, dominance, and search trends, reflects a sharp deterioration in sentiment since the October 10, 2025 (“10/10”) event, the largest liquidation cascade in crypto history, wiping out $19 billion in leveraged positions across 1.6 million accounts, according to CryptoQuant. Bitcoin dropped 14% that day, with altcoins suffering steep losses, exposing vulnerabilities in derivatives markets and exchange infrastructure, CoinGlass.
The 10/10 event triggered a sentiment collapse that has persisted, with the index lingering in fear territory for months. Alternative.me. Bitcoin’s dominance rose to 57.7%, as investors fled altcoins, according to TradingView. On-chain data shows reduced retail participation, with daily active addresses down 12% since October, Glassnode. X posts from @CryptoFearGreed highlight the index’s lows dating back to 2021, contrasting with the 20’s peak of 95 during the bull run. This, such as, underscores structural issues. Over-leverage and thin liquidity: The Block.
Despite retail fear, institutional engagement in DeFi and tokenization remains robust. BlackRock, Citadel, and others continue real-world asset (RWA) projects, with DeFi TVL holding at $167B, DefiLlama. Core Foundation’s staking partnership with Hex Trust and Circle’s GTR integration for USDC compliance signal institutional conviction . Santiment notes ETH’s cautious sentiment offers upside potential . This divergenceretail fear vs. institutional push mirrors 2022’s bear market, where institutional accumulation preceded recovery, CoinShares.
The Fear & Greed Index at 5 suggests a potential bottom, with historical lows often preceding rallies, Alternative.me. Bitcoin support at $112,000 and Ethereum at $rate-cute key, Techopedia. A Fed rate cut at the Jackson Hole summit could spark a rebound. Investors should monitor ETF flows on SoSoValue and on-chain metrics via CryptoQuant. Dollar-cost averaging into BTC or ETH with stop-losses below support levels and diversifying into USDC mitigates risk, according to TradingView. Follow @TheBlock__ on X for updates. While fear dominates retail, institutional DeFi momentum could drive a 2026 bull run.
