How the Crypto Fear & Greed Index Works
Crypto market behavior is highly emotional. When markets rise rapidly, investors tend to become greedy resulting in FOMO (Fear Of Missing Out). Conversely, when markets drop, traders panic and sell impulsively.
The Crypto Fear & Greed Index aggregates 6 data sources into a unified score from 0 to 100:
- 0–24 (Extreme Fear): Signals panic selling. Historically viewed as a buying opportunity.
- 25–46 (Fear): Cautious sentiment with defensive position building.
- 47–54 (Neutral): Equilibrium state awaiting directional catalysts.
- 55–74 (Greed): Bullish momentum and increased retail activity.
- 75–100 (Extreme Greed): Market over-extension risk; high chance of correction.
Financial Disclaimer: The Fear & Greed Index is an emotional sentiment indicator and should not be used as the sole basis for investment decisions.