Market Sentiment
Table of contents
Market Sentiment refers to the overall mood or attitude of investors toward a particular market or asset, whether bullish (positive) or bearish (negative).
Why It Matters
Sentiment influences price movements as traders often follow collective emotions rather than pure logic. High optimism can drive prices up, while fear can trigger sell-offs.
In Crypto Context
In crypto, tools like the Fear & Greed Index and social media trends help gauge sentiment, which plays a big role in short-term price fluctuations.