Looking at the latest market sentiment data is still a bit alarming. According to Alternative's monitoring, today's cryptocurrency Fear and Greed Index has dropped to 25, down from 27 yesterday, marking a significant move into the "Extreme Fear" zone. Compared to last week's average of 29, this decline is quite noticeable.

How is this index calculated? It involves several dimensions—volatility accounts for the largest share (25%), market trading volume also accounts for 25%, followed by social media activity, market surveys, each at 15%, Bitcoin's market dominance at 10%, and Google search trend analysis also at 10%. So, this index essentially reflects the true sentiment of market participants right now.

Currently, this fear index is on a scale from 0 to 100. Dropping from 27 to 25 indicates that negative sentiment has been accumulating over the past two days. Investors' expectations for the market seem to be tightening again.