The panic index drops to 21, but the crypto market remains trapped in the "extreme panic" cycle.

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Market Sentiment Continues to Remain Low

Latest data shows that the cryptocurrency Fear and Greed Index on December 14th continued to decline to 21, down from 23 the previous day. This indicates that market participants’ sentiment remains in the “Extreme Fear” zone, and trading psychology is still fragile.

How to Interpret the Fear and Greed Index?

Alternative data’s Fear and Greed Index is an important reference for measuring overall market sentiment, composed of:

  • Market volatility (weight 25%)
  • Trading activity (weight 25%)
  • Social media buzz (weight 15%)
  • Market surveys (weight 15%)
  • Bitcoin dominance (weight 10%)
  • Google search trends (weight 10%)

Market Signals Behind the Data

Although the Fear and Greed Index has dropped from 23 to 21, the small decline reflects that negative market sentiment has not eased. The dual suppression of volatility and trading volume indicates that investors lack enthusiasm for trading and have concerns about the market outlook. The social media buzz further directly reflects insufficient market participation.

In such an “Extreme Fear” environment, the market bottom features are not yet obvious, and cautious observation remains the wiser approach.

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