Market Sentiment Remains in Extreme Fear Territory as Fear and Greed Index Climbs to 22

Layer2Observer · 2026-01-12T07:52:22+00:00

The Fear and Greed Index has increased to 22, indicating extreme fear persists in the market despite a slight rise. The index measures market psychology using six components, revealing a cautious investor sentiment.

Layer2Observer

2026-01-12 07:52:22

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The Fear and Greed Index has moved up to 22 today, marking a marginal increase from yesterday’s 20 reading, yet sentiment continues to hover in the Extreme Fear zone. This measurement reflects the tension between fear and greed that currently grips the market.

Understanding how this index is constructed reveals the multifaceted nature of market psychology. The gauge incorporates six distinct components: Volatility accounts for 25% of the overall score, while Market Trading Volume carries equal weight at 25%. Social Media Popularity and Market Surveys each contribute 15% to the final reading. Bitcoin’s proportion within the total cryptocurrency market capitalization comprises 10%, and Google Hot Search Analysis rounds out the components at 10%.

The persistent classification at Extreme Fear suggests that despite today’s uptick, market participants continue to exhibit cautious behavior. The index, which operates on a scale spanning 0 to 100, serves as a barometer for the prevailing market sentiment—currently indicating that fear still dominates over greed in the broader cryptocurrency landscape.

BTC1,88%

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