Crypto Fear and Greed Index Slips to 78 Amid Signs of Cautious Sentiment

The Crypto Fear and Greed Index has slipped to 78, down from 82, indicating that investor sentiment is becoming more cautious.

This reading, which reflects both on-chain and off-chain sentiment signals, falls into the 'greed' zone, but is no longer extreme. The index's calculation includes price movements of the top 10 cryptocurrencies by market capitalization, as well as derivatives indicators like the put/call ratio and stablecoin supply ratio.

The four-point drop from the previous day may be a sign that investors are taking profits after a prolonged run of optimism. Derivatives data suggests increased hedging activity, with more traders buying downside protection despite elevated spot prices.