What is the Fear & Greed Index?

The Crypto Fear & Greed Index is a daily sentiment indicator for the cryptocurrency market. It helps investors gauge the mood of the market and make better decisions by analyzing multiple data sources.

Index Ranges Explained

• 0-24: Extreme Fear – Investors are very worried. This could be a buying opportunity as the market may be oversold.
• 25-49: Fear – Market sentiment is cautious or negative. Investors are becoming risk-averse.
• 50-74: Greed – Investors are becoming confident or optimistic. Market sentiment is positive.
• 75-100: Extreme Greed – The market may be overheated or due for a correction. Consider taking profits.

How is it Calculated?

The index is calculated using multiple factors:

• Volatility - Measuring current volatility and maximum drawdowns
• Market Momentum/Volume - Analyzing buying and selling pressure
• Social Media - Tracking sentiment on Twitter and other platforms
• Surveys - Polling crypto investors weekly
• Dominance - Monitoring Bitcoin's market cap dominance
• Trends - Analyzing Google search trends for crypto keywords

Trading Tips

• Extreme values often signal a possible reversal in the market
• Use the index as one indicator among many - don't rely on it solely
• Combine with technical analysis and fundamental research
• Historical data shows patterns but past performance doesn't guarantee future results

Source: Data provided by alternative.me. The index is updated daily and should be used as a sentiment guide, not financial advice.