Crypto Market Sentiment Shifts: Understanding the Crypto Fear & Greed Index

The Crypto Fear & Greed Index, a tool to gauge investor sentiment, has fallen to 71, a one-point dip from the previous day, keeping it in the "Greed" zone. This index, provided by Alternative, distills market emotions into a single number, ranging from 0 (fear) to 100 (greed). It analyzes six sources, including volatility, market momentum, social media, surveys, Bitcoin dominance, and the price of Bitcoin relative to its 200-day moving average. Understanding this index can empower investment decisions by identifying potential buying opportunities during fear and overvaluation during greed.