Bitcoin Dominance Sparks Extreme Fear as Crypto Market’s Fear & Greed Index Drops to 20

COINOTAG News, January 1, reports, according to alternative data, that the crypto fear and greed index stands at 20, a decline from 21 yesterday, underscoring the market’s extreme fear conditions.

The fear and greed index on a 0-100 scale consolidates six inputs: Volatility (25%), Market Trading Volume (25%), Social Media Hype (15%), Market Surveys (15%), Bitcoin Dominance (10%), and Google Trends (10%), highlighting where sentiment is derived from across the ecosystem.

For investors and traders, the reading supports a cautious stance with risk controls and selective exposure to risk assets, as sentiment signals from alternative data inputs help calibrate strategy without speculative extrapolation.