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Question #281

How does the Crypto Fear & Greed Index help beginners gauge Bitcoin market mood?

Category: General
It measures global hash rate fluctuations to gauge the real supply and demand pressure
It tracks actual Bitcoin transactions per second to predict future mining difficulty and prices
It shows fear versus greed levels indicating if sentiment is overly bullish or bearish

Why is this the correct answer?

This is correct because the Crypto Fear & Greed Index summarizes investor emotions by scoring market sentiment on a scale from extreme fear to extreme greed. Beginners can use this simple gauge to understand whether the market mood is overly pessimistic (potentially a buying opportunity) or overly optimistic (possible caution ahead).

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