Crypto Fear & Greed Index Drops to Fear Level 27
- The Crypto Fear & Greed Index is now at 27.
- Reflects current market fear sentiment.
- Significant impact on Bitcoin BTC -5.36% and altcoins.
The Crypto Fear & Greed Index, calculated by Alternative.me, shows a ’27’ for Bitcoin, indicating fear in the market as of today, emphasizing cautious sentiment among traders globally.
This low sentiment reading suggests increased market volatility and reduced speculative activity, particularly affecting Bitcoin and major altcoins as investors prioritize safer assets.
Market Sentiment in Fear Zone
The Crypto Fear & Greed Index has dropped to 27, indicating a fear sentiment in the market. This index is calculated by Alternative.me using various market factors. It reflects general sentiment rather than a single event.
The index’s calculation involves entities like Alternative.me and CoinMarketCap. It combines factors such as volatility, market volume, and social media sentiment to determine the current status, recently updating to Fear at 27.
Market reactions have been notable, with high volatility spikes in BTC derivatives and reduced volumes in altcoins. This shift emphasizes a preference for BTC amidst market fear, pushing its dominance higher.
Economically, the index level signifies profit-taking and reduced demand for digital assets, affecting ETF flows and speculative activities across the board. The Fear status hints at bearish market conditions and investor caution.
Historically, low index values often coincide with market corrections. The crypto market past shows prolonged periods in the Fear zone are common, usually stemming from BTC metric shifts.
Insights into the financial and market outcomes highlight potential increases in BTC market dominance. Regulatory influences remain indirect, with no explicit government filing affecting the index yet. “The Crypto Fear & Greed Index is designed to capture crowd sentiment around Bitcoin and the broader crypto market, producing readings that range from ‘Extreme Fear’ to ‘Extreme Greed.’ Current index value of 27 indicates fear prevailing in the market.” – Alternative.me
