Fear Gauge Soars 70%, Wall Street Now More Anxious Than Crypto Traders

The fear gauge on Wall Street surged nearly 70% on Thursday as the Nasdaq tumbled 5.52%. Sentiment measures now show deeper fear in U.S. equities than in cryptocurrency, reversing the typical pattern.

CNN's Fear and Greed Index for stocks reads 20, indicating extreme fear. The crypto equivalent sits at 28 but shed 22 points in a single day, leaving Bitcoin (BTC) holders exposed to more drastic sentiment fluctuations.

Why Did Wall Street's Fear Gauge Surge 70% in One Day?

The Nasdaq Composite dropped 5.52% to 24,315 on November 5, moving into correction territory. The S&P 500 lost 4.36% in the same period, while the Philadelphia Semiconductor Index fell 12.25%.

Chipmakers bore the brunt of the damage. Democrats secured Congress and three governor races in key data center states, adding strain on tech stocks already burdened by uncertainties around AI spending.

The shift happened quickly. Just a day earlier, the Dow had climbed roughly 1,500 points on the same election outcome.

That volatility was reflected in the Cboe Volatility Index (VIX). Created by Cboe, it measures the 30-day volatility traders anticipate, derived from S&P 500 options prices. On Wall Street, it is known as the fear gauge.

CBOE Volatility Index $VIX surged 70% today, its 3rd largest gain in history 🚨 👻 😱 pic.twitter.com/5pQKexhjVN

— Barchart (@Barchart) November 6, 2026

The VIX closed at 28.18, a jump that Barchart ranked as the third-largest in the index's history. According to TD, readings between 25 and 30 indicate growing turbulence, while levels above 30 suggest a highly volatile market.

How Deep Is the Fear in Stocks?

CNN's Fear and Greed Index reflects the sentiment. It combines seven market indicators, including the VIX, options activity, and demand for junk bonds and safe-haven assets.

The index stood at 20 on Friday morning. One month ago, it was at a neutral 47, and it was at 26 last week.

The selloff reached beyond the U.S. South Korea's main index fell 8.55% on Friday, sending the KOSPI below 5,000 for the first time since February.

That decline triggered a 20-minute trading halt in Seoul. SK Hynix and Samsung Electronics, which together account for roughly half the index, each dropped about 10% or more.

Is Crypto Fear Approaching a Bottom?

Crypto sentiment also weakened, although from a much higher starting level. The Crypto Fear and Greed Index, published by Alternative.me, fell to 28 from a neutral 50 a day earlier.

A month ago, that gauge showed Greed at 71. Crypto analyst CryptoTony expects the decline to deepen before reversing, suggesting extreme fear is approaching and a bottom is near.

CRYPTO FEAR AND GREED INDEX

"30" – FEAR .. FEAR is back in and EXTREME FEAR is not to far behind. Bottom is close .. pic.twitter.com/4bPa3FoRob

— Crypto Tony (@CryptoTony__) November 6, 2026

Not everyone agrees. Analyst Benjamin Cowen warned that a selloff similar to 2018 could push Bitcoin to $58,000.

Historical data suggest patience may be rewarded. The Nasdaq traded higher six months after nine of its last 10 corrections.

However, the exception was in 2022, when the Federal Reserve (Fed) continued raising rates. Traders now see a 68% probability of another Fed hike in December.

That leaves both markets linked to the same factor. The October jobs report, due later on Friday, could indicate whether tighter policy will keep the fear gauge elevated for stocks and crypto alike.