According to BlockBeats, data from Alternative indicates that the cryptocurrency fear and greed index has dropped to 30 on June 29, down from 47 the previous day. This marks a near one-year low, reflecting a significant increase in market panic sentiment.
The fear and greed index ranges from 0 to 100 and is calculated based on several factors. These include market volatility, which accounts for 25% of the index, and market trading volume, which also contributes 25%. Social media heat and market surveys each contribute 15% to the index. The proportion of Bitcoin in the overall market contributes 10%, and Google hot word analysis also accounts for 10%.
This index is a useful tool for understanding market sentiment. A lower score indicates a higher level of fear and panic in the market, while a higher score suggests a more greedy or bullish market. The recent drop in the index suggests that the market is currently in a state of fear, which could potentially impact trading decisions and market trends.