The Bitcoin Fear and Greed Index registered a recent reading of 71, down from its prior level of 74, reflecting a marginal cooling of greed-driven sentiment in cryptocurrency markets.
This investor sentiment gauge operates on a 0–100 scale and derives its value from multiple weighted market indicators. Volatility metrics and market trading volume each account for 25% of the calculation, while social media activity and current market surveys contribute 15% respectively. Bitcoin’s market dominance and Google Trends data each comprise the remaining 10% of the index.
Though still firmly in the ‘greed’ territory, the dip signals a subtle shift in trader psychology as the market absorbs recent price fluctuations. Analysts closely monitor these sentiment changes given the index’s historical correlation with market cycles.