Crypto 'Fear & Greed Index' Drops to 52...'Switch to Neutrality

IconCryptoNewsTerminal Staff01 Aug, 2024

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Crypto 'Fear & Greed Index' Drops to 52...'Switch to Neutrality

Cryptocurrency data provider Alternative's self-estimated 'Fear & Greed Index' fell by 9 points from the previous day to 52. As sentiment worsened, it transitioned from the greed stage to the neutral stage. The index indicates extreme fear in the market when it is close to 0 and extreme optimism when it is close to 100. The Fear & Greed Index is calculated based on volatility (25%), trading volume (25%), SNS mentions (15%), surveys (15%), Bitcoin market capitalization ratio (10%), and Google search volume (10%). This shift suggests that investors are becoming more cautious in the cryptocurrency market, potentially due to concerns about regulatory actions, geopolitical tensions, or broader economic headwinds. Traders should note that market sentiment can be fluid and subject to rapid shifts, requiring careful monitoring and risk management.

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