The Crypto Fear & Greed Index, provided by alternative.me, is analyzed each day based on the emotions and sentiments from different sources and the information is then combined into one simple number: The Fear & Greed Index for Bitcoin and other large cryptocurrencies.
Why Measure Fear and Greed?
The crypto market behaviour is very emotional. People tend to get greedy when the market is rising which results in FOMO (Fear of missing out). Also, people often sell their coins in irrational reaction of seeing red numbers. This Fear and Greed Index was created to save you from your own emotional overreactions. There are two simple assumptions:
- Extreme fear can be a sign that investors are too worried. That could be a buying opportunity.
- When Investors are getting too greedy, that means the market is due for a correction.
Therefore, the current sentiment of the Bitcoin market is analyzed and the numbers are placed into a simple meter from 0 to 100. Zero means “Extreme Fear”, while 100 means “Extreme Greed”.
————
Additional information can be found at: alternative.me/crypto/fear-and-greed-index