The key indicator of investors' sentiment in the cryptocurrency market has shown slight improvement, but is still in the red zone. According to Alternative me, the index rose by 5 points and reached 13, which corresponds to the "Extreme Fear" category. The score is calculated on a scale of 0 to 100, where values closer to zero indicate a predominance of panic and pressure from vendors.

The index calculation methodology takes into account six key factors with different weights. Volatility and volume of trading account for 25%, social media activity and investor polling account for 15%, and Bitcoin’s market dominance and search engine searches account for 10%. Since January 30, when the indicator first fell into the extreme fear zone, it has never been able to escape amid continued market uncertainty.

Analysts note that the long-term presence of the index in a zone of extreme fear is indicative of market participants' caution and risk avoidance.