Crypto Fear and Greed Index
Beginner
The Crypto Fear and Greed Index is a sentiment tool reflecting the predominant emotions of fear and greed in the cryptocurrency market. It calculates the emotional sentiment in the market using a scale from 0 to 100. A score of 0 represents "Extreme Fear," reflecting skepticism, uncertainty and potential undervaluing in the market. On the other hand, a score of 100 stands for "Extreme Greed," reflecting overconfidence, excessive optimism, and potential overvaluing.
The most commonly used index in the crypto realm is the Fear & Greed Index. It draws data from multiple platforms and different cryptocurrencies, with a focus on major cryptocurrencies like Bitcoin. This is useful in understanding the general bullish or bearish sentiment influencing the broader crypto marketplace.
The Index is usually determined using various indicators. Let’s delve into these: