According to PANews, the Fear and Greed Index has dropped to 80, indicating a state of extreme greed, although it has significantly decreased from the previous day's level of 93. This index, which ranges from 0 to 100, is a measure used to gauge market sentiment and is composed of several indicators.
The Fear and Greed Index includes volatility and market trading volume, each contributing 25% to the overall score. Additionally, social media activity and market surveys each account for 15% of the index. The proportion of Bitcoin in the overall market and Google search trends each contribute 10% to the index. These components collectively provide insight into the current emotional state of the market, reflecting whether investors are driven by fear or greed.
The recent decline in the index suggests a shift in market sentiment, although it remains in the extreme greed category. This change could be indicative of evolving investor attitudes and market dynamics. Monitoring such indices can offer valuable insights into potential market movements and investor behavior.