The Crypto Fear & Greed Index, a key indicator measuring investor sentiment in the cryptocurrency market, has shown an increase with the latest data. However, the negative investor psychology, often referred to as “excessive fear,” has not yet completely disappeared.
The index, compiled by crypto data provider Alternative.me, rose 12 points to 22 in its latest measurement compared to the previous day. However, despite this increase, the index is still in the “Extreme Fear” category. It is noted that the index moved from the “Fear” level to the “Extreme Fear” stage on January 30th and has remained in this region ever since.
This index assesses overall investor sentiment in the cryptocurrency market on a scale of 0 to 100. A value of 0 indicates excessive fear in the market, while a value of 100 points to excessive greed. This indicator is considered an important reference for understanding investor risk appetite and market psychology.
The index is calculated using multiple data sources. Accordingly, the calculation is weighted as follows: market volatility 25%, trading volume 25%, social media engagement 15%, investor surveys 15%, Bitcoin’s market capitalization dominance 10%, and Google search volume 10%.
Experts note that despite the rise in the index, investors remain cautious, and market uncertainties are keeping risk perception high. According to analysts, for the index to rise back to the “fear” or “neutral” zone, market stability needs to strengthen and price movements need to become more balanced.
