Crypto Fear & Greed Index refuses to budge from “Greed” at 61 That just doesn’t smell right, particularly in light of the fact that the market bled 7% on Friday, June 13th. Tone deaf. Particularly now, with the frightening announcement of Israel’s joint “Operation Rising Lion” against Iran ringing around the world. Bitcoin dropping down to $103k, Ethereum correcting, $1.2 billion in liquidations – high numbers, sure. They personify human beings, real fears, and aspirations shelved.

A common trope for Bitcoin is that it’s the hedge against inflation, the safe haven asset in times of crisis. Wars are a different beast. They are bloody, gut-wrenching, terrifying, and powered by the most base human instincts. Those emotions do the same on the most supposedly “decentralized” and “un-censorable” of assets, bitcoin. At a time when missiles are flying people aren’t looking at their crypto wallets. They’re concerned about their families, their safety, their very existence.

I talked with “Sarah” (not her real name), a hardworking, low income single mom. This past year, she sunk all but a couple thousand dollars of her life savings into Ethereum, aspiring to create a bright new life for her daughter. "I kept seeing all the hype, the promises of massive returns," she confessed, her voice trembling slightly. I knew it was dangerous, but I didn’t want to be left out. And now, seeing the price crater… I’m still not sure what I’m going to do.

Sarah's story isn't unique. Millions of Americans have been lured into the crypto market by the promise of easy fortune. Unfortunately, they usually go deep without really understanding the hazards. When geopolitical tensions explode, as they did with the Israeli-Iranian conflict, those risks quickly turn chillingly clear.

That Fear & Greed Index? It’s a terrible tool. It may measure market momentum overall, yes, but it fails to account for the human cost of volatility. …and it misses the crushing panic you feel. You stand by powerless as all your hard-earned savings evaporates before your very eyes. They call it “Greed,” when it really might just be from desperation. Everyone believes that the market will recover, so no one wants to sell at a loss and “realize their pain.”

When did it become greed to desire a better life for you and your children? Is it greed to want to get away from the harsh reality of living in a recession due to inflation and economic instability? I think not. It's hope. And that hope is being taken advantage of by a system that too often puts profits ahead of people.

This sharp jump in liquidations, the open interest drop – these are signs of a market that is in a world of pain. Someone is always profiting. Those who shorted Bitcoin, those who held stablecoins and bought the dip, the exchanges that rake in fees regardless of whether prices go up or down. It’s a system designed to reward only those with the greatest access to capital. It favors people with sophisticated trading strategies, maybe by design, maybe not.

Let us not forget that the “Operation Rising Lion” news came as a jarring reminder that real life doesn’t operate in a vacuum. Everything is interconnected. Economics, human psychology, and geopolitics often work together in a tight loop, and crypto is certainly no exception. The notion that it’s a magical, decentralized, free-market shield against the craziness of the world is, quite frankly, childish.

It’s time for investors to have an honest discussion about the ethics of crypto investing. It’s time to get beyond the hype and empty promises of “financial freedom.” We cannot turn a blind eye to the real-world consequences of this market volatility—particularly for those least able to bear it. We’re going to need better regulation, better investor protection, and a more human-centered approach to the whole crypto ecosystem.

In addition to highlighting the brittle nature of the crypto market, the Israel-Iran tensions revealed. It revealed a deeper truth: that even in the age of decentralized finance, human emotions remain the most powerful force of all. It is time we all faced this discouraging truth. If we don’t, the Fear & Greed Index will continue to be a cruel and dehumanizing barometer.

Now is the time to push back against the narrative of greed and recognize what the human toll was. The next time you read a headline about the latest crypto crash, remember Sarah. She, like millions of others, is trying to make her way through a very choppy and unstable market right now. Their stories deserve to be heard.

Time To Re-evaluate Our Assumptions

We need to have a serious conversation about the ethics of crypto investing. We need to move beyond the hype and the promises of "financial freedom" and acknowledge the real-world consequences of market volatility, especially for those who are least equipped to handle it. We need better regulations, better investor protection, and a more human-centered approach to the entire crypto ecosystem.

The Israel-Iran tensions exposed more than just the fragility of the crypto market. It revealed a deeper truth: that even in the age of decentralized finance, human emotions remain the most powerful force of all. And until we grapple with that reality, the Fear & Greed Index will continue to be a misleading and ultimately, dehumanizing metric.

It's time to challenge the greed narrative and focus on the human cost. The next time you see a headline about a crypto crash, remember Sarah and the countless others who are struggling to navigate this volatile landscape. Their stories deserve to be heard.