Fear Index Hits Record Low as Crypto Market Sentiment Plummets
According to the latest data from Alternative, the cryptocurrency Fear & Greed Index has dropped to 6 today, down from 9 yesterday, signaling extreme panic in the market. This level of fear is extremely rare and hasn't been seen since June 2022 and August 2019.
The index, which ranges from 0 to 100, now reflects one of the lowest levels of investor confidence in recent years. Such extreme fear suggests a deep market correction or the presence of significant uncertainty.
Understanding the Index and Its Market Impact
The Fear & Greed Index is calculated using multiple indicators:
- Volatility (25%)
- Trading volume (25%)
- Social media sentiment (15%)
- Market surveys (15%)
- Bitcoin dominance (10%)
- Google search trends (10%)
All components have weakened, indicating a broad-based decline in market confidence and a shift toward risk aversion among investors.