How does the fear and greed index work?

In the Crypto World.

The "Fear and Greed Index" operates on a scale from (0) to (100), where lower values "reflect fears" in the market and higher values indicate a feeling of greed among investors.

The algorithm processes this data through its own calculations, normalizing each component on a scale of (0) to (100).

... . In the case of "Bitcoin", this index is particularly relevant, as its price is highly volatile and is often influenced by investor sentiment.

Important: An executive explained that currently Bitcoin (BTC) is in a bullish phase of its price cycle.

Historically, during these periods, corrections of between (25%) and (50%) occur. The recent drop of (25%) - or more - from the historical high of (US$108,008.8) thousand, reached in January of this year, is considered moderate within this context.