Question n° 571 ·
How does the Crypto Fear & Greed Index shifting to Greed reflect changes in Bitcoin investor psychology and market momentum?
- It shows investors growing optimistic and piling into Bitcoin, driving positive momentum and price increases. Bonne réponse
- It indicates that only institutional investors are buying Bitcoin, while retail traders completely exit the market.
- It suggests traders are fearful and withholding funds, leading to lower trading volumes and stagnant Bitcoin prices.
Pourquoi est-ce la bonne réponse?
This is correct because a shift to 'Greed' on the Fear & Greed Index reflects rising confidence among traders. When more people feel FOMO and buy Bitcoin, it pushes the market higher. Beginners can think of it like crowd excitement lifting a hot air balloon: growing optimism fuels buying pressure, which boosts price momentum.