What is the Fear & Greed Index?
The Crypto Fear & Greed Index is a sentiment indicator that attempts to quantify the emotional state of the cryptocurrency market. It ranges from 0 to 100:
| Score | Sentiment |
|---|---|
| 0-24 | Extreme Fear |
| 25-49 | Fear |
| 50 | Neutral |
| 51-74 | Greed |
| 75-100 | Extreme Greed |
Data Sources
The index aggregates multiple factors:
- Volatility (25%): Unusual volatility increases fear
- Market Momentum/Volume (25%): High buying volume indicates greed
- Social Media (15%): Twitter/Reddit sentiment analysis
- Surveys (15%): Polling crypto community
- Dominance (10%): Bitcoin dominance changes
- Trends (10%): Google Trends for crypto terms
How to Use It
The index is often used as a contrarian indicator:
- Extreme Fear (0-24): Market may be oversold, potential buying opportunity
- Extreme Greed (75-100): Market may be overheated, caution advised
"Be fearful when others are greedy, and greedy when others are fearful." - Warren Buffett
Limitations
- Sentiment can remain extreme for extended periods
- Not a timing indicator on its own
- Should be combined with technical and fundamental analysis
In Our Reports
We display the daily Fear & Greed Index reading to help contextualize market sentiment alongside price action and derivatives data.