COINOTAG News, December 13, citing Alternative Data, reports that the crypto fear and greed index sits at 23 today, down from 29 yesterday, signaling a slide into the extreme fear zone. The index aggregates signals to quantify crypto market sentiment on a 0-100 scale.
Investors should note the index composition: Volatility (25%), Market Trading Volume (25%), Social Media Hype (15%), Market Surveys (15%), Bitcoin Dominance (10%), and Google Trends Analysis (10%). This distribution highlights risk, liquidity, and attention dynamics as the tally to 23 underscores cautious near-term price action.
For portfolio managers, the move to extreme fear often prompts risk controls rather than aggressive positioning. Traders may favor hedges, liquidity provisioning, and disciplined stop management as the market digests macro headlines and technical factors. The data serves as a behavioral barometer, not a price predictor.
Source: https://en.coinotag.com/breakingnews/bitcoin-fear-and-greed-index-drops-to-23-signals-extreme-fear-as-bitcoin-dominance-shapes-market-sentiment
