The post Crypto Fear & Greed Index Holds Steady at 75 in the ‘Greed’ Zone appeared on BitcoinEthereumNews.com.

The Crypto Fear & Greed Index, provided by software development platform Alternative, remains steady at 75 as of January 24, staying in the “Greed” zone for another consecutive day. This metric, which ranges from 0 to 100, gauges market sentiment where 0 signifies extreme fear and 100 indicates extreme greed, offering insights into the emotions driving the cryptocurrency market. Understanding the Crypto Fear & Greed Index The index incorporates six weighted factors to determine its score: Volatility (25%) High volatility often signals fear, while stable or rising markets reflect greed. Market Momentum/Volume (25%) Increased momentum and trading volume are signs of bullish activity and greed. Social Media Sentiment (15%) Social media activity, including mentions and engagement, is tracked to gauge public sentiment. Surveys (15%) Regular sentiment surveys provide a snapshot of how investors feel about the market. Bitcoin Dominance (10%) Rising Bitcoin dominance suggests fear as investors retreat to the market leader, while declining dominance often indicates risk appetite for altcoins. Google Trends (10%) Search trends for terms like “Bitcoin” or “crypto” are analyzed to assess retail interest. What Does a Score of 75 Mean? The score of 75 places the market firmly in the “Greed” zone, reflecting: Bullish Sentiment: Investors are optimistic about potential price increases. High Risk Appetite: Many are willing to take risks, often signaling overconfidence. Potential for Corrections: Historically, sustained greed often precedes market corrections as overvaluation occurs. Historical Context: Fear & Greed Index Trends Extreme Fear in 2022 During the crypto winter, the index frequently fell below 25, reflecting bearish sentiment and significant market uncertainty. Greed Returning in 2023 With Bitcoin’s recovery and institutional interest growing, the index began climbing back into the Greed zone. Current Stability in 2025 The index’s stability at 75 suggests a strong bullish sentiment, supported by factors like increased Bitcoin…

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Filed under: News - @ January 26, 2025 11:18 am