The Crypto Fear & Greed Index has plummeted to 18, indicating an 'Extreme Fear' market sentiment. This marks a two-point drop from the previous day's reading of 20.
The index measures investor sentiment by aggregating data points such as price momentum and volume, market volatility, derivatives data, stablecoin supply ratio, and search volume for crypto terms.
Historically, extreme fear readings have sometimes preceded market bottoms, but the index is not a timing tool. It can also signal prolonged bear markets or macro-driven sell-offs.