Crypto Fear & Greed: Index Drops to 44, Signaling Growing Apprehension

IconCryptoNewsTerminal Staff03 Jul, 2024

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Crypto Fear & Greed: Index Drops to 44, Signaling Growing Apprehension

The Crypto Fear & Greed Index, a popular indicator of market sentiment in the digital asset space, has seen a notable drop in its value, moving from 50 to 44 within a day. This shift indicates a transition from a neutral stance to a state of fear among investors. The index, created by data provider Alternative, gauges market sentiment through a combination of six factors: volatility, trading volume, social media mentions, surveys, Bitcoin's market cap share, and Google search volume. Each factor holds a specific weight in the calculation, with volatility and trading volume contributing 25% each. When the index value falls closer to 0, it suggests extreme fear, while a value closer to 100 indicates extreme optimism. The current reading of 44 falls within the fear zone, hinting at a growing sense of unease among crypto investors.

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