Fear & Greed Index

Explore the Fear & Greed Index. Understand the emotions driving the crypto market.

Fear & Greed Index

Historical Values

What Is Fear & Greed Index?

The Fear and Greed Index (FGI) is a comprehensive tool for analyzing cryptocurrency sentiment. It is based on several important market indicators to determine the level of fear or greed present, with a range of 0 to 100.

The Fear and Greed Index uses various modules to analyze influential variables in the cryptocurrency market, including volume, volatility, dominance, whale movements, search engine data, and order book analysis. It also features a machine learning algorithm that evaluates sentiment in social media posts and how popular technical analysis are affecting the market. Each module is given a specific weight based on its statistical impact on the market.

How the Fear & Greed Index Works?

Fear and Greed Index calculation uses important market metrics to build an unbiased summary of the current sentiment in the market. By analyzing Fear & Greed Index, you will be able to determine the current state of the market, its change over a certain period, and make strategic decisions.

How to Use Fear & Greed Index?

Fear & Greed Index indicates the current market sentiment. There are 4 possible ranges: Extreme Greed, Greed, Fear, and Extreme Fear.

Greed means that traders and investors feel too greedy. This may indicate that the market is due for a correction.
Fear means that traders and investors are too worried, close to panic sells. This could indicate a good entry point.

It is also important to analyze how FGI changed over the period of time, for example in one day, week, or month.

How Is the Crypto Fear and Greed Index Calculated?

The Crypto Fear and Greed Index is meticulously calculated based on a comprehensive analysis of multiple key metrics that gauge investor sentiment within the cryptocurrency market, such as the following.

Volatility

We are assessing Bitcoin's volatility and maximum drawdowns, comparing these metrics with the average values from the past 30 and 90 days. We suggest that an abnormal increase in volatility signals a market driven by fear.

Market Momentum and Trading Volume

We evaluate current trading volumes and market momentum against 30/90 day averages, then combine these indicators. Typically, high daily buying volumes in a positive market lead us to conclude that the market is excessively greedy or overly bullish.

Social Media Sentiment

We collect and tally posts with various hashtags for each coin from Twitter (X) and monitor the speed and volume of interactions within certain time frames. A surge in interaction rates signifies heightened public interest in the coin, which we view as indicative of a greedy market.

Dominance Metrics

A coin’s dominance represents its share of the total crypto market capitalization. For Bitcoin, an increase in dominance often stems from a flight to safety, reducing speculative investments in alt-coins as Bitcoin becomes the preferred safe haven in the crypto space. Conversely, a decrease in Bitcoin dominance suggests growing greed, as investors move into riskier alt-coins anticipating the next major bull run. For other coins, increasing dominance can imply a bullish or greedy sentiment specific to that coin.

Market Fundamentals

We analyze Google Trends data for various Bitcoin-related search queries, focusing on changes in search volumes and identifying other currently popular searches.