As of December 14, COINOTAG News, citing alternative data, shows the Fear and Greed Index landing at 21, down from 23 yesterday, underscoring a market still entrenched in extreme fear and shaping risk-taking behavior in crypto assets.

The Fear and Greed Index is a 0-100 gauge calculated from six pillars: Volatility (25%), Market Volume (25%), Social Media Sentiment (15%), Market Surveys (15%), Bitcoin’s Dominance (10%), and Google Trends (10%). The current configuration signals a cautious environment for market participants.

For observers and traders, the latest reading calls for heightened risk controls and diversified exposure. Monitor the extreme fear regime alongside volume and sentiment signals to gauge potential reversals, rather than chasing high-beta bets in the present climate.