Bitcoin Dominance Signals Fear in Crypto Market as Fear & Greed Index Reaches 26 on Dec 4

COINOTAG News reports, on December 4, citing Alternative Data, that the Fear and Greed Index for cryptocurrencies sits at 26 this session, a modest decline from 28 yesterday, signaling persistent crypto market sentiment in Fear territory. The index operates on a 0-100 scale and aggregates the following pillars: Volatility (25%), Market Volume (25%), Social Media Hype (15%), Market Surveys (15%), Bitcoin Dominance (10%), and Google Trends Analysis (10%).

Traders are advised to translate this Fear reading into disciplined risk controls rather than speculative bets. The breakdown suggests asset flows remain cautious, with emphasis on liquidity, stop placement, and hedging. While sentiment stays subdued, selective opportunities may arise where fundamentals align with trend signals from Bitcoin Dominance and Google Trends Analysis, guiding near-term positioning.