How does the Fear & Greed Index help beginners gauge Bitcoin market sentiment?
Why is this the correct answer?
This is correct because the Fear & Greed Index condenses various market signals into a single numeric scale that ranges from extreme fear to extreme greed, making it easy for beginners to understand whether overall investor sentiment is pessimistic or optimistic. It helps traders identify potential buying or selling opportunities based on crowd psychology rather than price action alone, similar to how one might gauge crowd mood in traditional finance.
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