How does the Crypto Fear & Greed Index illustrate shifts in investor sentiment for Bitcoin?
Why is this the correct answer?
This is correct because the Crypto Fear & Greed Index aggregates data like volatility, trading volume, social media trends, and surveys to quantify how worried or greedy investors feel. A move from the ‘Extreme Fear’ band into just ‘Fear’ means that panic sentiment is easing. For beginners, this index is a simple gauge: low values indicate pessimism and high values indicate optimism, so watching its changes helps you understand overall market psychology.
Related Terms
AI-Generated Content Disclaimer
Important Notice: This content has been generated with the assistance of artificial intelligence. While we strive for accuracy, there may be errors or inaccuracies in the information provided. Please exercise caution and verify any information before making decisions based on it. This information does not constitute investment advice, financial advice, trading advice, or any other sort of advice. You should not treat any of the content as such. CryptoMeteo does not recommend that any cryptocurrency should be bought, sold, or held by you. Always conduct your own due diligence and consult with a financial advisor before making any investment decisions.