The Cryptocurrency Fear and Greed Index, a key indicator measuring investor sentiment in the cryptocurrency market, has shown an increase in the latest data. However, negative investor psychology, often referred to as "excessive fear," has not yet completely disappeared.

Compiled by crypto data provider Alternative.me, the index rose 12 points in its latest measurement compared to the previous day, reaching 22. However, despite this increase, the index remains in the "Extreme Fear" category. It is noted that the index moved from the "Fear" category to the "Extreme Fear" category on January 30th and has remained in this area since then.

This index assesses overall investor sentiment in the cryptocurrency market on a scale from 0 to 100. A value of 0 indicates excessive fear in the market, while a value of 100 indicates excessive greed. This indicator is considered an important benchmark for understanding investor risk appetite and market psychology.

The index is calculated using multiple data sources. Accordingly, the weighting factors for the calculation are as follows: market volatility 25%, trading volume 25%, social media activity 15%, investor surveys 15%, Bitcoin dominance by market capitalization 10%, and Google search volume 10%.

Experts note that despite the index's growth, investors remain cautious, and market uncertainty maintains a high level of risk perception. Analysts believe that for the index to return to the "fear" or "neutral" zone, market stability must be strengthened and price movements must be made more balanced.

*This is not investment advice.

Taken from the source: https://cryptonews.net/ru/news/analytics/32516207/

The Cryptocurrency Fear and Greed Index is rising as new data emerges! Here are the details.