COINOTAG News, citing Alternative Data, reports that the cryptocurrency fear-and-greed index sits at 24, unchanged from yesterday, keeping the market in an ongoing state of extreme fear and cautious positioning as year-end liquidity shifts unfold.
The index aggregates six drivers on a 0–100 scale, with contributors including Volatility (25%), Market Volume (25%), Social Media Hype (15%), Market Surveys (15%), Bitcoin Dominance (10%), and Google Trends Analysis (10%). This composition signals prevailing risk-off sentiment, guiding asset managers toward capital preservation and selective exposure amid subdued risk appetite.
For risk management, traders should monitor shifts in Bitcoin Dominance and Google Trends Analysis in tandem with price action to gauge whether sentiment is shifting toward capitulation or a slow re-pricing cycle.
Source: https://en.coinotag.com/breakingnews/bitcoin-in-extreme-fear-as-crypto-fear-greed-index-stays-at-24-on-december-24
