Cryptocurrency Sentiment Cools Slightly as Fear and Greed Index Retreats to 74

NeverVoteOnDAO · 2025-12-26T21:25:04+00:00

The Fear and Greed Index decreased to 74, indicating a pullback from extreme greed but still reflecting positive market sentiment in cryptocurrency. The index combines various factors to assess market dynamics, showing sustained bullish momentum.

NeverVoteOnDAO

2025-12-26 21:25:04

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According to Alternative data, the Fear and Greed Index has eased down to 74 today, marking a pullback from yesterday’s 79. Despite this decline, market sentiment remains firmly in positive territory with traders continuing to display greed-driven behavior, though less extreme than the previous day.

The gauge has swung from ‘Extreme Greed’ territory yesterday into the ‘Greed’ zone today. Historical comparisons highlight the sustained bullish momentum in crypto markets: the 7-day average stood at 66, while the 30-day average was 61, indicating current readings are meaningfully elevated.

The Fear and Greed Index derives its readings from six weighted components that comprehensively capture market dynamics. Bitcoin’s dominance carries 10% weight, with social media activity accounting for 15%. Market surveys and Google Trends each contribute 15%, while trading volume and price volatility each represent 25% of the final calculation. This multi-faceted approach provides traders with a nuanced understanding of whether fear or greed is currently dominating cryptocurrency markets.

At 74, today’s reading suggests investors remain confident but with slightly moderated enthusiasm compared to the previous session.

BTC-1,86%

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