Market Insight
Crypto Fear & Greed Index
A single score from 0 to 100 that distils the overall emotional state of the crypto market — from extreme fear to extreme greed — so traders can act on sentiment rather than react to it.
The Basics
What Is the Fear & Greed Index?
The Scale
The index runs from 0 (Extreme Fear) to 100 (Extreme Greed). Values in the 0–25 range indicate panic-driven markets where sellers dominate. Values above 75 signal euphoria where buyers are overextended and tops may be forming.
- 0–24 — Extreme Fear: Market participants are panicking; historically a buying opportunity.
- 25–49 — Fear: Caution dominates; holders are uncertain and selling pressure persists.
- 50 — Neutral: Market is balanced; no strong sentiment edge in either direction.
- 51–74 — Greed: Optimism is rising; momentum can carry prices higher but risk is increasing.
- 75–100 — Extreme Greed: Euphoria; historically precedes corrections as the market becomes overextended.
How It Is Calculated
The index blends six weighted data sources updated daily to produce its score:
- Volatility (25%) — Measures current volatility and max drawdowns against 30 & 90-day averages.
- Market Momentum & Volume (25%) — Compares current volume and momentum against recent averages.
- Social Media (15%) — Analyses Twitter/X interaction rates on crypto hashtags.
- Surveys (15%) — Weekly polls on crypto sentiment across communities.
- Bitcoin Dominance (10%) — Rising BTC dominance can signal fear; falling signals greed in altcoins.
- Google Trends (10%) — Search interest for Bitcoin-related queries.
Trading Edge
How Traders Use the Fear & Greed Index
Contrarian Buying
When the index hits Extreme Fear (<20), contrarian traders begin accumulating. Warren Buffett's principle — "be greedy when others are fearful" — applies directly. Many historic Bitcoin bottoms have occurred in the 10–20 range.
Taking Profits at Greed
When Extreme Greed (>80) persists for multiple days, smart traders trim positions, set tighter stop-losses, and reduce leverage. The index doesn't predict a crash — but it raises the risk of one.
Trend Confirmation
Algorithmic traders layer the index on top of technical signals. A bullish crossover on the daily chart confirmed by rising sentiment (moving from Fear to Greed) gives stronger conviction than price action alone.
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