Cryptocurrency Fear and Greed Index Plummets: Recent Market Sentiment Link Analysis

Since last week, the psychological indicators in the cryptocurrency market have been rapidly declining. The Fear and Greed Index, which reflects overall investor sentiment across the Link crypto asset market, has now dropped to 32, indicating that it remains in the “Fear” zone.

Recent Market Signal Analysis of the Index’s Sharp Drop

Based on data from Alternative.me, this index has shown a clear downward trend over the past week. The index, which reached a recent high of 61 last week, has continued to decline and is now at 32, having sharply fallen from 44 yesterday. This rapid decline signals how quickly market participants’ sentiment is changing.

Looking at the historical context, the volatility of this index is even more pronounced. A week ago, the index was at 26, which was even lower than the current level, and a month ago, it had fallen to 20, indicating an “Extreme Fear” level. This suggests that the crypto market is moving within a state of ongoing psychological fluctuation.

Components of the Cryptocurrency Sentiment Indicator

This index is not just a simple number but a composite indicator that integrates various market data links. The Fear and Greed Index is composed of the following elements within a 0-100 range: market volatility accounts for 25%, trading volume also reflects 25%, social media activity makes up 15%, market research sentiment contributes 15%, Bitcoin’s market share accounts for 10%, and Google search trend analysis constitutes 10%.

Through these layered data links, investors can gain a more sophisticated understanding of the overall psychological state of the cryptocurrency market. The current index level of 32 indicates that the market is still dominated by fear, and investors are maintaining a cautious attitude.