The Crypto Fear and Greed Index has decreased slightly to 73, indicating a marginal cooldown in market greed while maintaining its position in the ‘greed’ zone. This shift reflects moderated investor optimism influenced by recent market volatility and social media activity, though overall sentiment remains bullish compared to neutral or fearful territory.
Calculated using six weighted metrics, the index allocates 25% each to market volatility and trading volume, 15% respectively to social media engagement and market research surveys, and 10% each to Bitcoin’s market dominance and Google search trends. The high weighting of volatility and volume underscores their significant psychological impact on traders.
Despite the slight retreat from the previous 75 reading, analysts attribute the change to normal market fluctuations rather than a fundamental sentiment shift. Investors are advised to closely monitor market dynamics, diversify portfolios to mitigate risk, and maintain informed decision-making protocols amid sustained greed conditions.