Bitcoin-Driven Fear and Greed Index Rebounds to 22 as Extreme Fear Eases

COINOTAG News, citing Alternative Data, reports that the Fear and Greed Index for the cryptocurrency market has rebounded to 22, up from 20 yesterday, signaling a reduction in extreme fear and a potential uptick in risk appetite among traders.

The Fear and Greed Index operates on a 0-100 scale, aggregating six pillars: Volatility (25%), Market Volume (25%), Social Media Hype (15%), Market Surveys (15%), Bitcoin’s Dominance (10%), and Google Trends Analysis (10%).

By consolidating these inputs, the index offers a snapshot of crypto market sentiment and assists investors in interpreting risk dynamics. The easing from prior levels of fear may align with cautious exposure and selective allocation within crypto assets.

Going forward, traders will monitor the Fear and Greed Index alongside price action and liquidity indicators to gauge whether sentiment momentum supports continued stability or prompts renewed caution amid macro developments.