Definition ∞ A market sentiment indicator is a tool or metric used to gauge the prevailing mood or overall attitude of investors towards a specific digital asset or the broader cryptocurrency market. These indicators can be derived from various data sources, including social media activity, trading volumes, or surveys. They help assess whether market participants are generally optimistic or pessimistic. Such indicators provide insight into collective investor psychology.
Context ∞ Cryptocurrency news frequently references market sentiment indicators to explain price movements and predict future trends. Extreme readings on these indicators, such as excessive greed or fear, often precede market reversals. Understanding these tools helps in interpreting the emotional drivers behind market behavior.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
