Fear and Greed Index Also Falls After Bitcoin (BTC) Pullback! Here Are the Details

CoinMarketCap’s Crypto Fear and Greed Index continues to remain in the “greed” zone despite a limited decline in market sentiment. The index fell 2 points to 73 compared to yesterday’s level.

The index is used to measure investor sentiment in the cryptocurrency market. A reading closer to zero indicates excessive fear, while a reading closer to 100 indicates excessive optimism. The current value of 73 shows that investors generally maintain a bullish outlook and have a high risk appetite.

CoinMarketCap considers the price movements of the top 10 cryptocurrencies by market capitalization when creating its index. In addition, market volatility, indicators from derivative markets, and the put/call ratio are among the data used in the calculation.

The index is also calculated using stablecoin supply ratio (SSR) and CoinMarketCap’s own search data. This combines various indicators related to price performance, market volatility, derivatives market, and investor interest under a single metric.

The index being at 73 indicates strong bullish sentiment in the market, while the 2-point drop compared to the previous day suggests a limited cooling in investor sentiment. Nevertheless, the fact that the indicator is still in the greed zone suggests that market participants’ interest in risky assets remains at high levels.