The drop in the Crypto Fear and Greed Index to 35 points indicates pessimism in the market, contrasting with the more optimistic sentiment of professional investors.
Investor Sentiment Differences
Bitwise's CIO, Matt Hougan, highlights the significant divergence in market perception between retail and professional investors. Retail investors feel negative, while professionals remain optimistic.
Fear and Greed Index: Current Situation
The Crypto Fear and Greed index has dropped to 35, significantly lower than last month's 69, indicating that the market is in a state of fear.
Reasons Behind the Index Drop
According to analyst James Seyffart, the index has declined because retail investors hold a large number of meme coins and altcoins, which have massively dropped in value. Last week, the top three memecoins by market capitalization fell more than 20%.
Despite diverging sentiments, experts note that the situation might vary depending on the specific crypto tokens.
