Bitcoin Hits Extreme Fear as Fear and Greed Index Dives to 10—Lowest in This Bull Market Cycle

COINOTAG News reports that today’s reading of the fear and greed index slid to 10 from 16, signaling renewed extreme fear within the crypto market. According to Alternative Data, the index marks the market’s sentiment at the lowest point observed in this cycle of the bull market, with a week-long stretch of risk-off conditions dominating price action.

The index is a composite of six inputs, clocking in at 0-100 on a sliding scale: volatility (25%), market trading volume (25%), social media hype (15%), market surveys (15%), Bitcoin’s dominance (10%), and Google Trends Analysis (10%). The current configuration underscores broad despondency across liquidity, activity, and broad media interest.

Markets monitor this crypto market sentiment readout as a potential macro signal for risk-off flows and volatility clustering. While the data cautions traders, participants should maintain disciplined risk controls and avoid over-leveraging in the near term amid persistent extreme fear readings.