Summary
- It reported that investor sentiment in the cryptoasset market has contracted sharply, with the fear phase and risk-off sentiment strengthening.
- According to BlockBeats, Alternative’s Fear & Greed Index hit 10, deepening the 'Extreme Fear' zone.
- It reported that the market is interpreting the decline in the index as a signal that investors’ risk-averse bias has strengthened significantly.
Forecast Trend Report by Period
Investor sentiment in the cryptoasset (cryptocurrency) market is rapidly deteriorating, deepening the fear phase. Analysts say risk-off sentiment is strengthening alongside heightened short-term price volatility.
According to crypto-focused media outlet BlockBeats on the 22nd, the Fear & Greed Index compiled by data provider Alternative stood at 10 on the day. It fell further from the previous day (12), indicating a deeper move into the ‘Extreme Fear’ zone.
The Fear & Greed Index is an indicator that reflects market sentiment on a scale from 0 to 100. In general, the lower the reading, the stronger investors’ fear.
The index is calculated by combining various factors including volatility (25%), trading volume (25%), social media trends (15%), market surveys (15%), Bitcoin market dominance (10%), and search trends (10%).
Market participants interpret the index’s entry into the extreme fear zone as a sign that investors’ risk-averse bias has strengthened markedly.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
![[Key Economic and Crypto Calendar for the Week Ahead] US Weekly Initial Jobless Claims, etc.](https://media.bloomingbit.io/static/news/brief_en.webp?w=250)
![[Market] Bitcoin briefly gives back $69,000… Fallout from Trump’s ‘Strait of Hormuz warning’](https://media.bloomingbit.io/PROD/news/78293fc1-a315-4ebb-81cf-f2cb32921d57.webp?w=250)