Crypto Fear & Greed Index Continues To Fluctuate At Neutral, Where Are We Headed Next?

The Bitcoin and general crypto market crash has sent investors spiraling and sentiment has accomplished been eroded because of this of this. The Crypto Fear & Greed Index, which measures investor sentiment, has plummeted during this time. But with the fluctuation within the Bitcoin price, investors remain indecisive on their view of the market.

Crypto Fear & Greed Index Struggles At Neutral

The Crypto Fear & Greed Index uses a number scale to point out how investors are viewing the market at any given time. It takes into consideration various indicators, starting from volatility to social media sentiment, market momentum, market volume, dominance, and trends.

By taking an aggregate of those data, the index then ranks crypto investor sentiment starting from 1-100. Between 1 and 24 puts the sentiment at Extreme Fear, and between 24 and 46 puts it at Fear. From 47 to 53 is Neutral, 54 to 74 is Greed, and 75 to 100 is Extreme Greed.

Each of those categories represent how investors are feeling at a given time and helps to shows whether it’s an excellent time to purchase or not. When the index is in Greed, it often signifies that the market will probably be correcting soon, and when it’s in Extreme Fear, it is generally a time to purchase.

Nevertheless, right away, the index is at a rating of 53, which represents the neutral level. What this implies is that investors will not be currently particularly bullish or bearish, and slightly, remain undecided as to what they’ll do next.

In cases similar to this, the crypto market is prone to large fluctuations in price. This also can mean very high volatility as investors take positions on either side. Nevertheless, this provides all investors equal opportunity to maneuver their market of their favor.

If sellers were to proceed at this point, then the value of cryptocurrencies similar to Bitcoin could proceed to say no. In the identical vein, if buyers were to win out, crypto prices would retain as much of a possibility to rise rapidly and proceed the uptrend.

With the beginning of the brand new month, though, the tug of war between the bulls and the bears has continued. The crypto market cap has fallen by around $30 billion because the recent month began. Nevertheless, this comes after an initial market cap pump to $2.29 trillion before falling back right down to $2.26 trillion on the time of writing.

Total market struggles amid decline in sentiment | Source: Crypto Total Market Cap on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

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