About the Crypto Fear & Greed Index

The crypto market is driven by extreme emotions. Investors often experience FOMO (Fear of Missing Out) when prices are rising, leading to greedy behavior. Conversely, FUD (Fear, Uncertainty, and Doubt) can cause them to panic-sell their coins. This index provides a daily snapshot of that emotional sentiment.

It analyzes data from various sources to create a simple score from 0 (Extreme Fear) to 100 (Extreme Greed), helping you make more rational decisions in an often irrational market.

Interpreting the Index (Typical Ranges)

• Extreme Fear (0-25): Indicates widespread panic and capitulation. Investors are overly worried, which could be a sign that the market is bottoming out. For contrarian investors, this can signal a potential buying opportunity.
• Fear (25-45): General negative sentiment is prevalent. Investors are cautious, selling pressure is high, and FUD is common. The market is showing signs of being oversold, but a clear reversal is not yet confirmed.
• Neutral (45-55): The market is in a phase of consolidation or sideways movement. The initial panic or excitement has subsided, and investors are waiting for a clear catalyst to determine the next major move.
• Greed (55-75): Optimism is growing, and FOMO (Fear of Missing Out) is starting to set in. Investors are becoming more interested in buying, leading to increased volume and positive price momentum.
• Extreme Greed (75-100): Market euphoria is at its peak. Investors are acting impulsively, often ignoring fundamentals. This level of greed historically indicates that the market is overbought and a correction may be imminent.

How to Use This Dashboard

• Gauge: Shows the most recent Fear & Greed score and its corresponding sentiment category (e.g., Fear, Greed).
• Trend Indicator: Shows how much the index has changed compared to yesterday (Up or Down).
• Line Chart: Displays the historical trend of the index score over time.
• Time Period Buttons (1W, 1M, 6M, 1Y, All): Click these buttons to view the historical data for the selected period.
• Zoom and Pan: You can interact directly with the historical chart:
  • Zoom: Use your mouse wheel to zoom in and out of the timeline.
  • Pan (Drag): Simply click and hold to drag the chart left or right. The cursor changes to a ✋ Hand Icon to show that the chart is movable.

Tips for Interpretation

• Contrarian Indicator: The most common use is as a contrarian tool. "Extreme Fear" can suggest that crypto investors have capitulated, potentially creating a major buying opportunity. "Extreme Greed" often indicates that the market is due for a correction, as FOMO has reached unsustainable levels.
• Not a Timing Tool: The crypto market can remain in a state of "Extreme Greed" or "Extreme Fear" for weeks. Do not rely on this index alone for exact entry or exit points. Use it to gauge the overall market sentiment.
• Look for Divergences: A powerful signal is when Bitcoin's price makes a new high, but the Fear & Greed Index fails to reach a new peak of greed. This "bearish divergence" can suggest that conviction is waning and the rally might be losing steam.
• Confirm with Other Indicators: This index is most effective when used with crypto-specific analysis. If the index shows "Extreme Fear," confirm this with other data such as:
  • On-Chain Metrics: (e.g., exchange withdrawal spikes, active addresses).
  • Bitcoin Dominance (BTC.D): Is money flowing into or out of altcoins?
  • Social Media Sentiment: Are keywords on Twitter and Reddit overwhelmingly negative?
  • Technical Indicators: (e.g., oversold RSI on the daily chart).

Frequently Asked Questions (FAQ)

• What is the data source? The data for the Crypto Index is fetched from a third-party API, a widely used source for this metric. It typically combines factors like market volatility, trading volume, social media sentiment, search trends, and Bitcoin dominance.
• How often is the data updated? The data is updated once every 24 hours from the source API. Our server refreshes this data automatically to provide a fresh daily reading of market sentiment.
• Why is the historical data shorter? The public API for crypto sentiment data does not go back as far as traditional stock market data. This chart shows the maximum available history from the source.
• Does this index cover all cryptocurrencies? While the index reflects the overall sentiment of the crypto market, its data sources are heavily weighted towards Bitcoin's behavior. Since Bitcoin's price action often influences the entire market, this index serves as a strong proxy for the sentiment surrounding major cryptocurrencies.
• Is this financial advice? Disclaimer: No. This index is for informational purposes only. The cryptocurrency market is extremely volatile. Always do your own research (DYOR) and consult with a professional before making any investment decisions.