Fear And Greed Index Reaches Extreme Greed Level

According to PANews, the Fear and Greed Index has risen to 79 today, up from 75 yesterday, indicating a level of extreme greed in the market. This index, which ranges from 0 to 100, is a composite measure that reflects market sentiment based on several factors. The Fear and Greed Index is calculated using a variety of indicators, each contributing a specific percentage to the overall score. Volatility and market trading volume each account for 25% of the index. Social media sentiment and market surveys contribute 15% each, while Bitcoin's dominance in the overall market and Google search trends each add 10% to the index. This rise in the index suggests a heightened level of optimism among investors, which can often precede market corrections. The index serves as a tool for investors to gauge market sentiment and make informed decisions. As the index approaches higher levels of greed, it may signal that the market is becoming overbought, potentially leading to increased volatility.