Everyone may have forgotten that there is also a fear and greed index in this market to test today's purchases.

What is the fear-greed index?

The Fear Greed Index assesses the emotional state of the Bitcoin (BTC) market.

Volatility: This metric measures how volatile BTC prices have been in the short term (past 30 days) and medium term (past 90 days). Abnormally high volatility is often seen as an extreme manifestation of market sentiment and may reflect excessive fear or greed in the market. However, in the current situation, BTC volatility has not expanded significantly at the weekly level, indicating that volatility may not be the direct cause of the rise in the fear index.

Momentum and trading volume: By comparing the momentum and trading volume data of the past 30 days and 90 days, you can gain insight into the market's trading activity and directional changes. Abnormally high buying volume may signal greed in the market, while abnormally high selling volume may reflect fear. However, considering that there is no significant abnormality in current trading volume and momentum, this factor is unlikely to be the main reason for the rise in the fear index.

Social Media Sentiment: Changes in public sentiment toward Bitcoin and other cryptocurrencies can be captured by analyzing speech on social media platforms. Although specific data is difficult to obtain accurately, judging from personal observations and feedback from platforms such as Twitter, users do not generally show extreme panic, but there are many voices buying the bottom. This suggests that social media sentiment may not be significantly driving the rise in the fear index.

BTC Dominance Rate: This metric measures Bitcoin’s relative dominance in the cryptocurrency market. When the BTC dominance rate decreases, it means that other cryptocurrencies (altcoins) are performing relatively well, which may cause investors to worry about the future performance of BTC. In the recent crash, altcoins did not follow BTC to fall sharply, resulting in a significant decline in BTC dominance. This change is likely to have an important impact on the rise in the fear index.

Google Trends: By analyzing the changes in the search volume of Bitcoin-related search terms on Google, you can understand the public's attention to Bitcoin. While Google Trends shows a small increase and no significant change, this may not be enough to explain the movement in the Fear Index alone, but it can serve as a secondary indicator of market sentiment.

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