Bitcoin Fear & Greed Index Enters Fear Zone as Price Drops

The Bitcoin Fear & Greed Index has shifted back into the fear zone, registering a score of 45. This marks a change since September 7th, attributed to recent bearish trends and price drops in the crypto market.

The index calculates sentiment using volatility, trading volume, market cap dominance, social media sentiment, and Google Trends.
Values below 47 indicate fear; above 53 suggest greed.
Markets tend to move contrary to collective expectations, suggesting potential positive outcomes when fear is prevalent.
Extreme fear (below 25) and extreme greed (above 75) often precede major market shifts.

Despite recent liquidations in the derivatives market, speculators remain engaged. Open Interest dropped with Bitcoin's price but recovered by $1 billion (2.63%).

Bitcoin's current price stands at $12,600 following its decline.