The index of fear and greed of the cryptocurrency market has set a new record
On Tuesday, March 5, according to the figures of the information and analytical platform CoinMarketCap, the index of fear and greed of the digital asset market increased by 8% compared to the previous day and exceeded 90%, which was the first achievement of such a level since February 2021.
This indicates that the market is currently experiencing a crisis of "extreme greed".
CoinMarketCap analysts draw the attention of crypto investors: against the background of market turbulence, its participants may demonstrate extreme forms of emotional behavior. For example, to become greedy when the market is growing, or to spontaneously sell assets due to an irrational reaction to a temporary drop in quotations.
The extreme fear and greed index can not only demonstrate a favorable investment opportunity, but also mean that the market is expecting an inevitable correction.
"Don't fall for news manipulation, but take advantage of it to understand how the market sees the price potential for crypto assets in a certain period of time," CoinMarketCap experts recommend.
The fear and greed index ranges from 0 to 100 and consists of indicators: volatility (25%), market trading volume (25%), social media activity (15%), market reviews and research (15%), the level of dominance of bitcoins in the total volume (10%) and analysis of thematic search Google search results (10%).
Source: https://bits.media/indeks-strakha-i-zhadnosti-kriptovalyutnogo-rynka-postavil-novyy-rekord/
