Question #471 ·
How does a low Fear & Greed Index score reflect investor psychology in the Bitcoin market?
- It shows investors are extremely confident and buying steadily more
- It reflects investors are neutral and trading Bitcoin without emotion
- It indicates investors are overly fearful and hesitant to buy Right answer
Why is this the correct answer?
This is correct because a low Fear & Greed Index score signals extreme fear among market participants. When investors feel fearful, they tend to avoid buying assets due to concerns about further price drops. This hesitation reduces buying pressure and often coincides with depressed prices in the Bitcoin market.