COINOTAG News, citing alternative data, reports that as of December 8 the cryptocurrency Fear and Greed Index remains at 20, unchanged from yesterday, signaling persistent extreme fear in the market. The index runs on a 0-100 scale and aggregates six inputs: Volatility (25%), Market Trading Volume (25%), Social Media Hype (15%), Market Sentiment (15%), Bitcoin Dominance (10%), and Google Trends Analysis (10%).
Traders should consider cautious risk management as the reading reflects subdued appetite for risk. Ongoing attention to Bitcoin Dominance trends and the Google Trends Analysis component can help frame entry points and stop discipline, while treating the Fear and Greed Index as a complement to price action and other market sentiment indicators.