Fear And Greed Index: Understanding a Key Market Indicator

The Fear Greed Index is a popular tool used by investors to gauge the market’s emotional temperature. It operates on a simple principle: when extreme fear permeates the market, it often signals that investors are excessively apprehensive. Conversely, extreme greed may suggest that the market is overextended and could be on the cusp of a correction. The fear & greed index analyzes a variety of data, including market volatility, momentum, options markets, junk bond demand, stock price breadth, and market surveys.

Fear Greed Index: Application to Bitcoin

Bitcoin’s price is heavily influenced by investor emotion and sentiment due to its high volatility and status as a relatively…

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