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Panic index re-enters extreme zone, Bitcoin market sentiment hits bottom
【Crypto Rhythm】On January 10th, there is a detail worth noting in the crypto market—the Fear and Greed Index has dropped to 25, lower than the previous day’s 27. In other words, the market has re-entered the “Extreme Fear” zone.
It’s important to note that last week, the average value of this index was still at 29, and the decline over the past two days has been quite rapid. Moving from 27 to 25 may seem like a small change, but it indicates that market participants’ psychology is quickly turning pessimistic.
How is this index calculated? It is derived from a blend of six dimensions. Volatility and trading volume each account for 25% of the weight, social media buzz and market surveys each account for 15%, Bitcoin’s market dominance weight is 10%, and Google search trend data also accounts for 10%. In other words, it scores the market’s level of panic based on factors like volatility, trading activity, public sentiment, and Bitcoin’s dominance.
On the full scale from 0 to 100, a score of 25 indicates that the market is filled with panic. This state of extreme fear is often when some traders look for bottom-fishing opportunities.
This time I'm really anxious. The number 25 makes me feel uncomfortable just looking at it.
Every time the index drops, the market behaves like that. It's truly a collective moment of surrender.
Wait, is it real? Just two days from 29 down to 25? It feels like the public opinion damage is even more intense than the fluctuations.
I actually don't trust this index very much. What can Google search trends really represent?
Damn, you're trying to buy the dip again, huh? Can you avoid getting caught this time?
I've known it would be like this for a long time. Just look at what those people on Twitter are doing.
By the way, the algorithm for this index must be incredibly accurate. Six dimensions together? Volatility, trading volume, and public opinion—it's basically quantifying human fear.
Bottom signals? Or still falling? Only heaven knows.