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Question #124

How does the Crypto Fear and Greed Index reflect investor sentiment during Bitcoin's October 2025 sell off?

Category: General
The Fear & Greed Index stayed around 50, showing balanced sentiment. It suggested no clear buying or selling pressure during that period. October 2025
The Fear & Greed Index rose above 80, reflecting extreme greed. This indicated strong bullish sentiment despite the price drop in October 2025.
The Fear & Greed Index dropped into the low-20s, signaling extreme fear among investors. This often marks market bottoms and clear potential buying opportunities.

Why is this the correct answer?

This is correct because the Index uses factors like price momentum and social media sentiment to gauge emotions. Readings in the low-20s indicate pessimism so extreme that it can signal a turning point when sellers are exhausted, often presenting buying chances for newcomers once they understand contrarian signals.

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