Fear and Greed Index
The Crypto Fear and Greed Index is a 0 to 100 sentiment score that summarizes market emotion, from extreme fear to extreme greed.
The Fear and Greed Index condenses market sentiment into a single number. A reading near 0 signals extreme fear, which often appears after sharp sell-offs. A reading near 100 signals extreme greed, which tends to appear near cycle peaks. The best-known crypto version is published daily by Alternative.me, and several data sites publish their own variants.
The index blends inputs such as price volatility, trading volume and momentum, social media activity, Bitcoin dominance, and search trends. Each input is weighted and the result is scaled from 0 to 100. Because it reacts to recent price moves, it tends to be a lagging indicator that confirms what has already happened.
Some investors use the index as a contrarian signal, buying during extreme fear and reducing exposure during extreme greed, on the theory that crowds overreact. The index has no predictive guarantee and extreme readings can persist for weeks. It is best treated as a rough mood check, not a trading system.
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