The panic index drops to 23, market remains in extreme fear | Bitcoin sentiment analysis

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【Blockchain Rhythms】Latest data as of December 30 shows that the cryptocurrency market's Fear and Greed Index has dropped to 23, down from 24 the previous day, with market sentiment still shrouded in extreme fear.

How is this index calculated? Let's break it down — volatility accounts for 25%, reflecting the extent of price swings; trading volume also accounts for 25%, representing market activity; social media buzz and market surveys each account for 15%, reflecting community sentiment; Bitcoin's market share (10%) and Google search hot words (10%) are also included in the calculation.

These six dimensions together form a thermometer to measure overall market sentiment. The index ranges from 0 to 100, with lower values indicating more fear and higher values indicating greed. Currently in the extreme fear zone, indicating that market participants are quite cautious.

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