Opinion by: Oleksandr Lutskevych, Founder and CEO of CEX.io
Bitcoin markets have consistently shown greater emotional resilience than traditional equities during multiple global shocks.
While some on Wall Street found this “impressive” during the “Liberation Day” sell-off on April 2, such optimism isn’t a glitch — it’s a pattern that extends across digital assets.
Let’s look closer at Fear and Greed Index dynamics in crypto and stocks. After Donald Trump announced tariffs on nearly all countries in April, the Stock F&G Index dropped from 19 to 3 — a more than 80% plunge and a three-year low. In contrast, the Crypto F&G Index declined from 44 to 18 — a 59% decrease.
Of course, these indexes aren’t identical. CNN’s Stock F&G Index tracks traditional sentiment through signals like VIX volatility, safe-haven demand and market breadth. The Crypto F&G Index relies on price momentum, volume and social sentiment metrics. Despite different inputs, both aim to measure the same thing: market emotion.
When viewed side by side during macro shocks, the contrast in mood becomes obvious. When macro winds turn cold, stock investors typically panic harder and recover more slowly than crypto investors.
May 2022 offers an illustrative example. On May 4, the US Federal Reserve raised interest rates from 0.5% to 1%, sparking recession fears that spilled into crypto. Then, on May 9 to May 13, LUNA and UST collapsed. Yet the Stock F&G Index fell 82% (to 4), while Crypto F&G dropped 62% (to 8).
Even while crypto was already under pressure and hit harder by LUNA’s collapse, which contributed to several bankruptcies within the industry, crypto remained less terrified than the stock market. Crypto sentiment took longer to rebound, however, due to the established bear market at the time.
Crypto’s inherent optimism is a strength, not a flaw
Some may call crypto’s optimism naive or irrational. In reality, it’s structural.
The volatility native to crypto recalibrated investor expectations. A 20% drawdown in equities is a bear market. In crypto, it could be a healthy correction. The scale and frequency of price swings…
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