About the Fear & Greed Index

The Crypto Fear & Greed Index measures market sentiment on a scale from 0 to 100. The index is based on the idea that excessive fear can drive prices below their intrinsic value, while excessive greed can inflate prices into a bubble.

How It's Calculated

The index aggregates data from multiple sources, each weighted to produce the final score:

Volatility (25%): Compares current volatility and maximum drawdowns to 30-day and 90-day averages. Higher volatility indicates fear.
Market Momentum/Volume (25%): Measures current volume and momentum against averages. High buying volume indicates greed.
Social Media (15%): Analyzes sentiment and engagement on crypto-related social media posts.
Surveys (15%): Weekly polls gauging investor sentiment (currently paused).
Bitcoin Dominance (10%): Rising BTC dominance often signals fear as investors flee to the "safer" asset.
Google Trends (10%): Search volume for Bitcoin-related queries, especially fear-driven searches.

Trading Implications

Extreme Fear (<25): Historically, periods of extreme fear have often preceded market bottoms. Warren Buffett's famous advice: "Be greedy when others are fearful."
Fear (25-44): The market is concerned but not panicking. Could be an accumulation opportunity for long-term investors.
Neutral (45-55): Market is balanced. Neither fear nor greed dominates. Wait for clearer signals.
Greed (56-74): Market is optimistic and possibly overheating. Consider taking some profits or tightening stop losses.
Extreme Greed (>75): Market euphoria often precedes corrections. "Be fearful when others are greedy." Consider risk management.

Limitations

The index is a lagging indicator—it reflects current sentiment, not future price movements
Extreme readings can persist for extended periods during strong trends
Should be used alongside other analysis tools, not as a sole trading signal
Historical patterns don't guarantee future results

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Position Size Calculator — Size positions appropriately based on market conditions
DCA Strategy Simulator — Test dollar-cost averaging for accumulation during fear periods
Real Yield Guide — Deploy capital into sustainable yield during uncertain markets
TVL Explained — Understand protocol fundamentals beyond sentiment

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Sentiment data provided by Alternative.me. Updated daily.