The drop in the Crypto Fear & Greed Index from 75 to 68 underlines how slowly this metric reacts to real market shifts. It is constructed from data that captures what has already happened, so by the time it reaches an extreme reading, the underlying sentiment has often started to change.
Its real value is in describing the broader mood rather than predicting the next move. Market conditions can shift in hours, driven by liquidity, positioning, and catalysts that this index will only reflect later. The current reading still shows optimism, but it may be the afterglow of earlier momentum rather than evidence of fresh buying pressure. Relying on it for timing can mean responding to a sentiment peak that has already passed.