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Question #256

What does a low reading on the Crypto Fear and Greed Index indicate about Bitcoin market sentiment?

Category: General
It signifies Bitcoin transaction fees are low and overall congestion light
It means investors are greedily buying more Bitcoin expecting further price
A low reading indicates widespread fear and reluctance among Bitcoin investors

Why is this the correct answer?

This is correct because the Crypto Fear and Greed Index measures overall market emotions. A low reading signals that most investors are fearful and uncertain, which often leads to selling pressure or hesitation to buy. Understanding this helps beginners recognize that low values reflect caution and potential oversold conditions, rather than a positive buying signal.

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