The Bitcoin Fear and Greed Index has experienced a significant surge, reaching a level of 71.
This jump from a previous reading of 62 signals a notable increase in greed sentiment among cryptocurrency market participants, indicating heightened investor confidence.
The index, a widely monitored gauge of market psychology, operates on a scale from 0 (Extreme Fear) to 100 (Extreme Greed).
It synthesizes data from multiple sources to provide a comprehensive sentiment snapshot for traders and analysts.
Key metrics feeding into the index calculation include market volatility (25%), trading volume (25%), social media activity (15%), market surveys (15%), Bitcoin’s dominance (10%), and Google Trends analysis (10%).
This multi-faceted approach aims to capture the prevailing emotional state driving Bitcoin investment decisions.