Bitcoin in Extreme Fear as Fear and Greed Index Drops to 20
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COINOTAG News, December 7, citing Alternative Data, reports that the cryptocurrency Fear and Greed Index has declined to 20 from 23, underscoring continued extreme fear within the market. This sentiment gauge operates on a 0-100 scale and aggregates multiple drivers to inform risk assessment.
The calculation weights include: Volatility (25%), Market Trading Volume (25%), Social Media Hype (15%), Market Surveys (15%), Bitcoin Dominance (10%), and Google Trends Analysis (10%), composing a composite measure used by traders to calibrate entry and exit strategies.
With the index firmly in the ‘extreme fear’ quadrant, market participants are urged to maintain disciplined risk management and focus on liquidity and capital preservation rather than speculative momentum.