The sentiment gauge gained two points from the previous day, but the reading still points to caution as investors weigh macroeconomic, policy and regulatory risks.
CoinMarketCap’s in-house Crypto Fear and Greed Index rose two points from the previous day to 39, indicating a slight improvement in crypto market sentiment while remaining in the fear zone. The gauge is designed to track investor risk appetite, with readings closer to zero signaling extreme fear and readings nearer 100 indicating extreme optimism. CoinMarketCap says the index is calculated using price movements in the top 10 cryptocurrencies by market capitalization, market volatility, derivatives-market indicators including the put/call ratio, the stablecoin supply ratio and the company’s own search data. Analysts say the modest rise points to some easing in market stress, though sentiment remains fragile as investors weigh macroeconomic developments, interest-rate policy and regulatory uncertainty. They add that stronger trading volumes and firmer institutional inflows, particularly into spot Bitcoin and Ethereum ETFs, may be needed for sentiment to improve more durably.