【Block Rhythm】On January 10th in the crypto market, there's a detail worth paying attention to — the Fear & Greed Index dropped to 25 again, lower than the previous day's 27. In other words, the market has re-entered the "extreme fear" zone.
You should know that last week the average value of this index was still at 29, and the decline over these two days has indeed been quite rapid. From 27 to 25, although the numerical change seems small, it represents a rapid shift in market participants' psychology towards pessimism.
How does this index come about? It's calculated by mixing six dimensions. Volatility and market trading volume each account for a quarter of the weight, social media heat and market survey polls each account for 15%, Bitcoin's share of the overall market has a weight of 10%, and Google's trending search data also accounts for 10%. In other words, it scores the market's level of panic from multiple angles — volatility, trading volume, public sentiment, and Bitcoin's dominant power.
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