Crypto Fear and Greed Index
Each day, we analyze emotions and sentiments from various sources and distill them into one simple number: the Fear and Greed Index for Bitcoin and other major cryptocurrencies.
Now Fear & Greed Index：Extreme greed79
The market sentiment is "extreme greed", meaning that trading activity and market liquidity are very high, and coin prices are volatile.
Historical values
Yesterday
73 (Greed)
7 days ago
75 (Extreme greed)
30 days ago
79 (Extreme greed)
Update time
Last updated:
2024-12-26 00:00
The next update will happen in
0h: 0m: 0s
Index source
Alternative.me
Crypto Fear and Greed Index chart
What does the Crypto Fear and Greed Index take into account？
We gather data from the following five sources. Each data point is weighted equally to the previous day to visualize meaningful progress in the sentiment changes of the crypto market.
Here are the factors currently included in the index:
Volatility (25 %)
We measure Bitcoin's current volatility and maximum drawdowns, comparing them to the average values over the last 30 and 90 days. An unusual rise in volatility is interpreted as a sign of a fearful market.
Market momentum/Volume (25%)
We assess current market momentum and volume by comparing these values to the average values over the last 30 and 90 days and putting these two values together. When we observe high buying volumes in a positive market on a daily basis, we conclude that the market is behaving greedily or overly bullish.
Social media (15%)
While our Reddit sentiment analysis is not yet included in the live index (as we are still experimenting with market-related keywords in the text processing algorithm), our X analysis is fully operational. We gather and count posts using various hashtags for each coin (currently, we display data publicly only for Bitcoin) and analyze the speed and volume of interactions within specific time frames. An unusually high interaction rate indicates growing public interest in the coin, which we interpret as a sign of greedy market behavior.
Surveys (15%)
Together with strawpoll.com (disclaimer: we own this platform), which is a large public polling site, we conduct weekly crypto polls to gauge market sentiment. These polls typically receive 2000–3000 votes per poll, providing insight into the sentiment of a segment of crypto investors. While we don't place heavy emphasis on these results, they were particularly useful during the early stages of our research. You can view some recent results here.
Dominance (10%)
The dominance of a coin represents its market cap share within the entire crypto market. For Bitcoin, a rise in dominance often reflects market fear, as investors reduce speculative altcoin investments and turn to Bitcoin as a safe haven asset. Conversely, when Bitcoin's dominance declines, it suggests increasing greed, with investors shifting to riskier altcoins in hopes of profiting from the next big bull run. However, when analyzing the dominance of a coin other than Bitcoin, the interpretation may differ. Increased interest in an altcoin could indicate bullish or greedy behavior specific to that coin.
Trends (10%)
We analyze Google Trends data for various Bitcoin-related search queries, focusing on changes in search volumes and other recommended trending searches. For example, searching "Bitcoin" on Google Trends might not provide much insight from the overall search volume. However, on May 29, 2018, there was a +1550% rise in searches for "bitcoin price manipulation" among related queries. This clearly signals fear in the market, which we factor into our index.
How is the Crypto Fear and Greed Index calculated and how should it be used?
The crypto market is highly driven by emotions. When the market rises, people often become greedy, leading to FOMO (fear of missing out). Conversely, market declines can trigger irrational selling in response to seeing "red numbers". The Fear and Greed Index aims to help you avoid these emotional overreactions.
There are two simple assumptions:
Extreme fear may indicate that investors are overly worried, potentially presenting a buying opportunity.
Excessive greed often signals that a market correction is imminent.
The creators analyzed historical Bitcoin market sentiment and condensed the data into a scale from 0 to 100.
0-25: Extreme fear
25-45: Fear
45-55: Neutral
55-75: Greed
75-100: Extreme greed
Please note that this indicator lacks sufficient historical samples to fully validate its effectiveness. Use it carefully as you develop your own investment strategy.
FAQ
What is the Fear and Greed Index?
The Fear and Greed Index is a tool that measures market sentiment by assessing the levels of fear and greed in the market, specifically in financial markets like stocks, commodities, or cryptocurrencies. It helps investors understand whether market conditions are overly optimistic (greed) or overly pessimistic (fear), which may indicate potential price movements.
In general:
Fear reflects market uncertainty, panic, or pessimism, which may be associated with falling prices.
Greed reflects market optimism or excessive risk-taking, which may be associated with rising prices.
The index typically calculates a range of indicators, including market volatility, momentum, social media trends, surveys, and an overall sentiment score.
What are the maximum and minimum scores on the Fear and Greed Index?
The Fear and Greed Index is typically displayed on a scale of 0 to 100:
A score closer to 0 signifies extreme fear, showing investor pessimism and indicating a potential buying opportunity.
A score closer to 100 signifies extreme greed, showing investor optimism and indicating an overheated market or potential bubble.
While the scale is capped at 100, extreme values (0 or 100) are rarely sustained for long, often signaling an impending market shift.
What is the Crypto Fear and Greed Index?
The Crypto Fear and Greed Index is a tool specifically designed to assess sentiment within the crypto market. It evaluates factors such as:
Price volatility: The extent of price swings in the crypto market.
Market volume: Changes in trading volumes that can reflect sentiment shifts.
Social media activity: Metrics like tweets, forum posts, and sentiment analysis.
Dominance: Bitcoin's market dominance, which often sets the direction for other cryptocurrencies.
Similar to traditional markets, the Crypto Fear and Greed Index helps investors identify extremes in sentiment that may signal potential buying or selling opportunities.
How to use the Fear and Greed Index
The Fear and Greed Index can be a helpful contrarian tool for making investment decisions. Here's how to use it:
When the index shows extreme fear (0–25):
Potential buying opportunity: Extreme fear may indicate investors are overly pessimistic, and the market may have overreacted to short-term factors. Historically, these periods have presented buying opportunities, as prices could be undervalued due to widespread panic.
Risk: While it may be a good time to buy, extreme fear doesn't always mean prices will immediately bounce back. Always consider other factors and do additional research before entering the market.
When the index shows extreme greed (75–100):
Potential selling opportunity: Extreme greed may imply the market is overheating, and prices may be inflated due to overly optimistic sentiment. This could indicate that a correction or downturn is likely, and it might be a good time to make profits or reduce exposure.
Risk: Just because greed is high doesn't mean the market will immediately decline. Sometimes, extreme optimism can last longer than expected. It's essential to balance fear and greed with other technical and fundamental analysis tools.
When the index is in the neutral zone (26–74):
The market is likely in a balanced state, with neither extreme fear nor extreme greed. This may be a less volatile period, and investors might focus on trends, fundamentals, and other technical indicators.
Key takeaways for using the index:
The Fear and Greed Index acts as a contrarian indicator. Extreme fear may suggest a buying opportunity, while extreme greed may signal a selling opportunity.
Not a standalone tool: While helpful, the Fear and Greed Index should not be used in isolation. It's important to combine it with other analysis tools, such as technical indicators, market trends, and macroeconomic factors.
Consider time horizons: The index is often more useful for shorter-term investors or traders looking for market sentiment shifts. Long-term investors may not need to rely solely on fear and greed signals but can still benefit from the context it provides.
By using the Fear and Greed Index alongside other indicators, investors can better gauge market sentiment and make more informed decisions.
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