The cryptocurrency market’s sentiment gauge, the Fear and Greed Index, registered at 70 today, down slightly from 71 the previous day. This measurement indicates a modest decline in investor greed sentiment despite ongoing market optimism.
The index quantifies market psychology on a 0-100 scale by synthesizing six critical metrics: volatility (25%), market trading volume (25%), social media engagement (15%), market research data (15%), Bitcoin’s dominance ratio (10%), and Google search trends (10%). Higher values historically correlate with bullish market behavior.
This minor pullback reflects cooling speculative pressure amidst reduced trading activity and price volatility. As the index remains a vital emotional barometer for crypto investors, analysts recommend ongoing monitoring to gauge market psychology shifts and inform strategic investment decisions.