COINOTAG News reported on December 11 that based on Alternative data, the Fear and Greed Index for cryptocurrency markets stands at 29, up from 26 yesterday, placing the sector in the Fear zone and marking the highest reading in a month.

The index is calculated on a 0-100 scale using a composite of signals: volatility (25%), market trading volume (25%), social media hype (15%), market sentiment (15%), Bitcoin dominance (10%), and Google Trends analysis (10%).

For traders, the current Fear and Greed Index reading suggests cautious positioning and may influence risk management strategies amid near-term volatility.