The Cryptocurrency Fear and Greed Index has experienced a noteworthy increase, now standing at 20, which is an uptick from 16 observed the previous day. Despite this progression, it is essential to recognize that the index remains firmly categorized in the 'extreme fear' range. This index is pivotal in assessing market sentiment and investor psychology, ranging from 0 to 100.
It embodies a comprehensive calculation derived from various critical factors. These include volatility contributing 25%, market trading volume also accounting for 25%, along with social media activity contributing 15%. Additionally, market surveys play a crucial role, making up another 15% of the total index value.
Bitcoin's dominance in the broader market constitutes 10%, whereas Google Trends analysis rounds out the measurement with the final 10%. Understanding these components can offer investors valuable insights into potential market trends and behaviors..