The Crypto Fear and Greed Index is a multifactorial sentiment analysis that analyses emotions and data from different sources and puts them in one simple number.
The range of the Crypto Fear and Greed Index starts at 0 (Extreme Fear) to 100 (Extreme Greed). Investors should be looking to buy fear and sell greed.
Understanding the Crypto Fear & Greed Index
The values on the Crypto Fear and Greed Index range from 0 (extreme fear) to 100 (extreme greed). There are 4 seperate zones in the chart that are as follows:
- 0-24 = Extreme Fear
- 25 - 39 = Fear
- 50 -74 = Greed
- 75-100 = Extreme Greed
Crypto Fear and Greed Index: Data Sources
The Crypto Fear and Freed Index takes data from five different sources with various percentage weightings. Each data point is measure at the same time everyday and the index is updated accordingly. The data sources are as follows:
- Market Volatility (25%): The index measures the daily move of Bitcoin and Ethereum and compares it with the average volatility of the last 90 days.
- Market Volume (25%): The index also looks at market trading volume relative to the last 90 days.
- Social Media (15%): This particular Crypto Fear and Greed index has a text processing algorithm that analysis Reddit, Twitter and other social media platforms to gauge sentiment.
- Dominance (10%): This index also measures Bitcoin (BTC) Dominance. It considers the market to be greedy if Bitcoin dominance is dropping and Alts are gaining dominance.
- Trends (25%): They also pull Google Trends data to gauge retail and general public interest as a data source for the Crypto Fear and Greed index.
Whys is a Fear and Greed Index Relevant?
The Fear and Greed Index is relevant for both crypto and traditional markets. It allows investors to get an objective measure on whether the markets are becoming overly exuberant and people are becoming greedy.
It has historically been a good move to sell when people are greedy, and buy when they are fearful.
The Crypto Fear and Greed Index is a multifactorial sentiment analysis that analyses emotions and data from different sources and puts them in one simple number.
The range of the Crypto Fear and Greed Index starts at 0 (Extreme Fear) to 100 (Extreme Greed). Investors should be looking to buy fear and sell greed.
Understanding the Crypto Fear & Greed Index
The values on the Crypto Fear and Greed Index range from 0 (extreme fear) to 100 (extreme greed). There are 4 seperate zones in the chart that are as follows:
- 0-24 = Extreme Fear
- 25 - 39 = Fear
- 50 -74 = Greed
- 75-100 = Extreme Greed
Crypto Fear and Greed Index: Data Sources
The Crypto Fear and Freed Index takes data from five different sources with various percentage weightings. Each data point is measure at the same time everyday and the index is updated accordingly. The data sources are as follows:
- Market Volatility (25%): The index measures the daily move of Bitcoin and Ethereum and compares it with the average volatility of the last 90 days.
- Market Volume (25%): The index also looks at market trading volume relative to the last 90 days.
- Social Media (15%): This particular Crypto Fear and Greed index has a text processing algorithm that analysis Reddit, Twitter and other social media platforms to gauge sentiment.
- Dominance (10%): This index also measures Bitcoin (BTC) Dominance. It considers the market to be greedy if Bitcoin dominance is dropping and Alts are gaining dominance.
- Trends (25%): They also pull Google Trends data to gauge retail and general public interest as a data source for the Crypto Fear and Greed index.
Whys is a Fear and Greed Index Relevant?
The Fear and Greed Index is relevant for both crypto and traditional markets. It allows investors to get an objective measure on whether the markets are becoming overly exuberant and people are becoming greedy.
It has historically been a good move to sell when people are greedy, and buy when they are fearful.
