BITCOIN FEAR AND GREED INDEX

The Crypto Fear & Greed Index is a composite sentiment indicator that scores the market from 0 (Extreme Fear) to 100 (Extreme Greed) based on a weighted blend of six data sources: price volatility, market momentum and volume, social media signals, surveys, Bitcoin dominance, and Google Trends data. Each component is normalized and combined to produce a single number that reflects the prevailing emotional state of the crypto market.

The index is most useful as a contrarian signal. Historically, readings in the Extreme Fear zone (0–25) have coincided with capitulation events and attractive long-term entry points. Readings in the Extreme Greed zone (75–100) have often appeared near cycle tops, when the market is over-leveraged and expectations are stretched. Being greedy when others are fearful, and cautious when others are greedy, is the classic framework most traders apply to this index.

Day-to-day swings in the index are less useful than the trend direction and duration. A market that has been in Extreme Fear for several weeks carries different implications than a single-day dip into that zone. Similarly, extended greed periods that persist without a reset can signal that sentiment is becoming structurally over-extended rather than just momentarily elevated.

Like all sentiment tools, the index has limitations — it cannot predict timing, and components such as social media signals can be gamed or distorted during viral events. Use it alongside price action, on-chain data such as MVRV Z-Score and NUPL, and derivatives signals like funding rates and long/short ratios to form a complete picture of market conditions.