$1 Trillion Wiped Out in a Month as Crypto Investor Sentiment Effectively Collapses

▲ Bitcoin Plunge © CoinReaders

Despite attempts at a rebound in the virtual asset market, investor sentiment has frozen at its worst level on record.

According to cryptocurrency media outlet Finbold on February 12 (local time), CoinMarketCap data shows that the “Fear & Greed Index” scored 8 out of 100. This figure falls within the “Extreme Fear” range and is interpreted as a sign that investors are extremely reluctant to buy digital assets and are likely to sell during rebounds.

Although this is not the lowest level ever recorded, the index previously fell to 5 on February 6, marking a historic low. However, considering that it stood at 41—within the “Neutral” range—just a month ago, the latest figure highlights how rapidly market sentiment has cooled since the start of 2026.

The shrinking market size supports this trend. The virtual asset market began the year with a market capitalization of $2.97 trillion on January 1 and expanded by about $300 billion to reach $3.25 trillion on January 14. Since then, it has shifted into a sharp decline. As of February 12, market capitalization has fallen to $2.29 trillion, wiping out roughly $1 trillion.

Bitcoin (BTC) previously dropped to around $60,000 and is currently trading near $67,725. Although it has recovered from recent lows, the market appears to be stabilizing within a gradual downward rhythm rather than staging a sharp rebound. Aside from technical rebounds at strong support levels, gains have been limited, particularly during low-volume periods such as weekends.

With investor sentiment lingering near historic lows, this situation is also cited as weakening the credibility of some optimistic forecasts that Bitcoin could rebound to $150,000 in 2026. Although prices have recovered from short-term lows, broader market sentiment indicators remain entrenched in extreme fear, suggesting it is premature to discuss a full-fledged trend reversal.

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