The Crypto Fear & Greed Index dropped to 15, falling from 24 the day before, into “extreme fear” territory. The weekly average score is recorded at 27. These levels suggest the market is entering a state of “extreme panic.”
Crypto Fear Index Drops to 15, Signifying Extreme Panic
The crypto fear index is a key market indicator measuring investor sentiment. The index’s score ranges from 0 to 100, with values approaching 0 indicating extreme fear and values approaching 100 indicating extreme greed.
The index is calculated based on six key factors: market volatility (25%), trading volume (25%), social media interactions (15%), investor surveys (15%), Bitcoin’s market dominance (10%) and Google search trends (10%).
Analysts attribute the sharp decline in the index to the decline in Bitcoin’s price, falling trading volumes, and negative investor sentiment on social media. They also point out that rising US interest rates and macroeconomic uncertainties have weakened investor sentiment.
According to experts, such periods of “extreme fear” can often signal market bottoms, but high volatility and selling pressure are expected to continue in the short term.
*This is not investment advice.