Crypto 'Fear & Greed Index' Nosedives to 40, Signalling Transition to Fear
CryptoNewsTerminal Staff09 Aug, 2024
Crypto 'Fear & Greed Index' Nosedives to 40, Signalling Transition to Fear
The 'Fear & Greed Index' by crypto data provider Alternative has plummeted to 40, marking an 8-point drop from the previous day. This significant decline indicates a shift from neutrality to a state of fear in the cryptocurrency market. The index, which ranges from 0 (extreme fear) to 100 (extreme optimism), gauges market sentiment based on six factors: volatility, trading volume, SNS mentions, surveys, Bitcoin market cap ratio, and Google search volume. As the index approaches 0, it suggests intense market fear, while a level near 100 signals extreme optimism. Currently, the Fear & Greed Index sits at 40, reflecting increased uncertainty and anxiety among investors. This transition to fear is a notable development in the crypto market, indicating a potential shift in investor confidence and a possible sell-off. Market participants should closely monitor the index and other market indicators to make informed investment decisions.
