According to COINOTAG News, December 30, the cryptocurrency fear and greed index sits at 23, signaling sustained extreme fear in the market. The reading, derived from alternative data sources, slipped from 24 the previous day, underscoring cautious sentiment among traders and investors. This composite gauge, which operates on a 0-100 scale, offers a snapshot of risk appetite across several sentiment drivers rather than a single market signal.
The index compiles six components: Volatility (25%), Market Volume (25%), Social Media Hype (15%), Market Surveys (15%), Bitcoin Dominance (10%), and Google Trends (10%). Taken together, they portray a risk-off backdrop where liquidity and interest may wane, reinforcing a prudent stance among market participants. Readers and traders should watch these indicators for any early signs of sentiment shifts.
Source: https://en.coinotag.com/breakingnews/bitcoin-driven-crypto-market-in-extreme-fear-as-fear-and-greed-index-drops-to-23-on-december-30
