The cryptocurrency market has recorded another wave of "fear": the index since November 3rd has not risen above the critical level

The chain of sentiment decline in the cryptocurrency market has been ongoing for several months. As of December 27, the fear and greed index reached 23 points(the previous day showed 20), confirming the consolidation of negative expectations among market participants. It is noteworthy that since November 3, this index has not once exceeded the 30-point threshold — a phenomenon last widely observed in the fourth quarter of 2022.

Breakdown of the index components: how the market picture is formed

The fear and greed index (range 0-100) consists of several components that comprehensively reflect the state of the cryptocurrency market:

Market volatility accounts for 25% of the weight coefficients, trading volume another 25%. Dynamics on social media and trader surveys each contribute 15%, while Bitcoin’s share in total capitalization (currently 56.62%) accounts for 10%, as does the popularity of search queries in search engines.

This structure allows for an objective assessment: when sentiments are fixed below 30, it signals deep uncertainty in the market and the dominance of panic over optimism.

Why the persistence of low indicators raises concerns

Prolonged consolidation of the index below the 30 mark is not a one-time fluctuation but a systemic trend. Such a scenario last unfolded before market stabilization at the end of 2022, which preceded a more sustained recovery in 2023. However, the current duration of the fear period indicates deep distrust in market prospects, despite any current catalysts.