Crypto Fear & Greed Index

The Crypto Fear and Greed Index is a metric designed to gauge market participants' sentiment. This index aims to assist investors in understanding the prevailing market sentiment and may provide insights into potential market reversals.

Ranging from 0 to 100, where 0 indicates "Extreme Fear" and 100 indicates "Extreme Greed," the index's computation involves various emotional and behavioral factors among market participants. These factors encompass market volatility, trading volumes, social media sentiments, news coverage, and more.

When the index is at a lower level (close to 0), it suggests the market may be experiencing extreme panic, with investors exhibiting heightened caution. This scenario might present opportunities for a market rebound. Conversely, when the index is at a higher level (close to 100), it indicates the market may be characterized by extreme greed, with investors overly optimistic. This situation could serve as a warning sign for potential market corrections or reversals.

Investors can utilize the Fear and Greed Index as a reference for market sentiment, but it should be approached with caution. Other factors, coupled with technical and fundamental analyses, should be carefully considered for a comprehensive investment decision-making process.