The Crypto Fear and Greed Index, calculated by crypto data provider Alternatif, fell by 4 points compared to the previous day, falling to 10. The index thus remained in the “Extreme Fear” category. The indicator moved from the “Fear” level to the “Extreme Fear” zone on January 30 and has remained in this range since.
The index measures market sentiment on a scale of 0 to 100. A level of 0 indicates “excessive fear,” while a level of 100 indicates “excessive greed.” A current value of 10 points suggests that investors’ risk appetite is quite low and a cautious atmosphere prevails in the market.
The Fear and Greed Index is calculated based on six key elements: volatility (25%), trading volume (25%), social media engagement (15%), survey results (15%), Bitcoin market cap dominance (10%), and Google search trends (10%). Volatility and low volume typically increase fear levels, while increased search trends and social media interest can be interpreted as signals of greed.
Recent price volatility in cryptocurrency markets and macroeconomic uncertainties are cited as key factors stifling investor confidence. Analysts point out that even if the index remains in the “extreme fear” zone for an extended period, which has historically coincided with bottoming phases, this alone should not be taken as a buy signal.
*This does not constitute investment advice.