Question #251 ·
What is the Fear & Greed Index and how does it reflect current Bitcoin market sentiment?
- The Fear & Greed Index tracks Bitcoin trading volume over seven days and shows price strength against metrics.
- The Fear & Greed Index rates market emotion from 0 to 100 and indicates Bitcoin sentiment is cautious. Right answer
- The Fear & Greed Index measures network hashrate fluctuations daily and warns investors when mining difficulty slightly rises.
Why is this the correct answer?
This is correct because the Fear & Greed Index is designed to quantify investor emotions on a numeric scale from zero to one hundred. A lower reading indicates fear or caution among market participants, while a higher reading signals greed or optimism. Beginners should view a low score as investors hesitating to buy and a high score as widespread excitement driving demand.