The Crypto Fear & Greed Index, a widely followed barometer of market sentiment, has dropped one point to 21, remaining firmly in the ‘Fear’ category. The index, calculated by data provider CoinMarketCap, measures investor emotions on a scale of 0 to 100, where 0 indicates extreme fear and 100 represents extreme optimism. The latest reading suggests that caution continues to dominate the cryptocurrency market.

What the Index Measures

CoinMarketCap’s index is not a simple poll but a composite of several market factors. These include the price movements of the top 10 cryptocurrencies by market capitalization, overall market volatility, derivatives data such as the put-call ratio, the Stablecoin Supply Ratio (SSR), and the…