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Question #114

What does a drop in the Fear and Greed Index to 37 signal about Bitcoin market sentiment?

Category: General
Fear and Greed Index drops directly correlate with mining reward reductions by protocol rules.
Low index value around thirty seven indicates predominant fear causing cautious overall investor behavior.
A low reading signals bullish momentum as traders anticipate immediate and strong price surge.

Why is this the correct answer?

This is correct because the Fear and Greed Index measures sentiment on a scale from zero to one hundred. A reading of thirty-seven falls into the ‘fear’ zone, meaning most traders are worried about further downside. When fear dominates, investors are more likely to reduce positions or stay on the sidelines. For beginners, this indicator helps you see when market sentiment is overly negative and may rebound once fear subsides.

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