An index combines multiple data points into a single measure. Similar to how the Dow Jones Industrial Average tracks the stock market, the Crypto Fear and Greed Index tracks overall market sentiment.

This index is not a financial instrument and cannot be traded. It’s a sentiment indicator designed to support your analysis, not replace it.

What Is a Market Indicator?

Market indicators help traders and investors analyze data more efficiently. They generally fall into three main categories.

Technical analysis (TA)
Focuses on price action, volume, and trends using tools like moving averages or Ichimoku Clouds.

Fundamental analysis (FA)
Evaluates intrinsic value through metrics such as adoption, utility, and market capitalization.

Sentiment analysis

Measures crowd psychology through social media activity, news flow, and public opinion.

The Crypto Fear and Greed Index belongs to sentiment analysis. Other examples include Augmento’s Bull & Bear Index and WhaleAlert, which tracks large on-chain transfers.

What Does the Fear and Greed Index Measure?

Originally developed by CNNMoney and later adapted to crypto by Alternative.me, the index scores market sentiment from 0 to 100.

0–24 indicates extreme fear
25–49 indicates fear
50–74 indicates greed
75–100 indicates extreme greed

Fear often reflects panic selling or undervaluation, while greed can signal FOMO, overheating, and potential bubbles.

How the Index Is Calculated

As of 2025, the index mainly relies on Bitcoin-related data due to BTC’s strong influence on overall market sentiment.

The calculation includes volatility, market momentum and volume, social media activity, Bitcoin dominance, Google search trends, and survey data, with volatility and momentum carrying the highest weight.
Can It Be Used for Long-Term Analysis?

Not on its own.

The Fear and Greed Index is more effective for short- to mid-term sentiment shifts, making it useful for swing traders. Long-term investors still need fundamentals, macro context, and proper risk management.

Even within strong bull or bear markets, sentiment constantly oscillates between fear and greed.

The Crypto Fear and Greed Index is a context tool, not a buy or sell signal.

Use it to understand crowd psychology, not to outsource your decisions.

Always combine it with other indicators, manage risk carefully, and DYOR.