ear and Greed index is calculated using different metrics, such as the volatility, the market momentum, social media sentiment and more. Moreover, There are several F&G indexes for Bitcoin available for investors such as CoinStats, alternative.me, which are the most popular amongst traders.
Methodology Differences
The different platforms are overall similar but possess some differences in the way they calculate the F&G and the methods used. For example, alternative.me provides new data daily, focusing on volatility and market momentum. On the other hand, CoinStats provide new data every 8 hours and include survey analysis as well.
Current Market Sentiment
Despite Bitcoin’s swift recovery from the lows of last week at $48,000, all different platforms are showing Extreme Fear. This could be due to high volatility and low market sentiment across social media platforms. Furthermore it is always important to analyze different sources in order to get a better perspective about market sentiment.
Bitcoin Sentiment Indexes:
The Bitcoin Fear & Greed indexes are useful in getting insights into the market trends but the difference in the kind of data collected in each of them show why it is important to look at different sources. It is important to note the complex factors that influence investors in their behaviors and sentiment, mainly due to the risk and volatility associated in the crypto market.
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