The Fear and Greed Index of cryptocurrencies - how it works

A numerical indicator from 0 to 100. Just a reflection of market emotions 🔍. Where 0 is panic and sell-offs, 100 is euphoria and risk of correction.

Fear and Greed — What It Really Is

Fear in the market - everyone is selling. Assets are getting cheaper 📉. It seems that no one wants to buy. Greed is a different matter. The market is rising, people are grabbing everything. FOMO in its purest form. Prices are soaring, but this is not always good 📈.

For crypto traders, this is particularly important:

• You can find moments to buy
• Helps to not panic
• "Buy when there's blood on the streets"

How it is calculated

Several factors are taken into account in the calculation:

• Volatility (25%): Bitcoin jumps — fear, calm — greed 🔄
• Volumes (25%): Large purchase volumes — greed
• Social networks (15%): What people are saying on Telegram and Twitter
• Surveys (15%): Traders' opinions are also taken into account
• BTC Dominance (10%): Everyone is rushing into Bitcoin — usually fear
• Google Trends (10%): What users are searching for 🔎

The data is constantly updated. It is not always perfectly accurate, but the trend is usually captured.

Where to watch the index

Several places:

• Alternative.me: Classic source
• CoinMarketCap: They have their own index
• CoinStats: Update twice a day

There are mobile applications. You can add a widget to the site 📱.

Currently on the market (September 2025)

The index for bitcoin is currently somewhere in the greed zone (73) 🔥. It looks optimistic. Possibly even too much. Altcoins usually follow bitcoin, although there is no single index for them.

How to use in trading

When it's scary — buy 🌕

Index 0-24? The market is in panic:

• Look at the charts and RSI
• Place limit orders
• Don't forget the stop-loss

When everyone is greedy — sell 🚀

Index 75-100? It's time to think about exit:

• RSI above 70? Bad sign
• Fix the profit
• Or short if you're brave

"Counter-Strategy"

Do the opposite:

• Index 10? Maybe it's time to buy.
• Index 90? Sell while everyone is happy

You shouldn't rely solely on the index — it's just one of the tools. Technical analysis hasn't been canceled. History seems to show that the index captures reversals well, but no one can predict the exact timing 📊. In my opinion, it's more of a guideline than a clear signal for action.