Market sentiment in the cryptocurrency sector showed signs of cooling as indicated by the widely monitored Crypto Fear and Greed Index.
The index, a key indicator tracking investor psychology, declined to a reading of 65, down from its previous position of 73 just one day prior. This drop suggests a reduction in market euphoria or greed.
Measuring sentiment on a scale from 0 (Extreme Fear) to 100 (Extreme Greed), the index relies on a combination of six distinct factors: volatility (25%), market volume/momentum (25%), social media sentiment (15%), market surveys (15%), Bitcoin dominance (10%), and Google Trends data (10%). The recent downward shift reflects a moderation in these underlying metrics.