Fear and Greed Index
The Crypto Fear and Greed Index is a signal for the overall crypto market that attempts to quantify market sentiment and emotion. The index gathers data from multiple sources, including Social Media, Google Trends, and Volatility data to produce a signal integer to quantify whether the crypto market is feeling more fearful or greedy on a particular day.
Interpreting the Fear & Greed Index
The index outputs numbers between zero and a hundred, where the integer value represents the emotional sentiment towards bitcoin and other crypto markets for a specific day. Zero means “Extreme Fear” whilst a value of one hundred indicates an “Extreme Greed” sentiment.
As a rule of thumb periods of fear could be interpreted as a potential buying opportunity whilst periods of greed could be interpreted as suggested the market is potentially over valued.