According to BlockBeats, data from Alternative indicates that the cryptocurrency fear and greed index has dropped to 40 on June 27, down from 46 the previous day. This suggests a continued state of fear in the market.
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 makes up 15% of the index, while market surveys contribute another 15%. The proportion of Bitcoin in the overall market accounts for 10% of the index, and Google hot word analysis makes up the remaining 10%.
This index is a useful tool for understanding the current sentiment in the cryptocurrency market. A lower score indicates a higher level of fear, while a higher score suggests a state of greed. The recent drop in the index to 40 indicates a prevailing sense of fear among market participants.