The Crypto Fear & Greed Index

Prices are plunging.

And the Crypto Fear and Greed Index (FGI) has dropped to 8/100.

What does that even mean though?

Introduction

Crypto is too volatile.

There are thousands of metrics you can read up on.

That’s why FGI is a great metric to consider.

FGI measures the market sentiment of cryptocurrency at the current time.

Right now, it’s not looking too good.
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Reading the Index

The Crypto Fear and Greed Index is measured from 1-100.

0-49 showing Fear

50-100 showing Greed
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How Can This be Interpreted?

1 → Extreme Fear. People are Selling. This is a buying opportunity, prices decline.

100 → Extreme Greed. People are Buying. This is a selling opportunity, prices increase.

6 Metrics That The Index Includes

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1. Volatility

- 25% of Index Value

- Compares volatility and max drawdowns against 30-day and 90-day average volatility and drawdown numbers.

- Higher Volatility = Fearful and Increases Final Output

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2. Market momentum and volume

- 25% of the Index Value

- Measures the current momentum and volume of the Bitcoin market, against the 30-day and 90-day average.

- High volume and momentum = negative metrics and increases final index output.

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3. Social media

- 15% on Index Value

- Measures the social media engagement (mentions, hashtags, interactions) across various social media sites.

- More participation = Higher Index Score

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4. Surveys

- 15% of Index Value

- Measures the results of 2,000-3,000 survey participants.

- More enthusiastic survey results = Higher Index Score

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5. Trends

- 10% of Index Value

- Measuring crypto search volume on Google.

- More Search Volume = Higher Index Score

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6. Dominance

- 10% of the Index Value

- Measures the dominance of Bitcoin in the crypto market. Markets get greedy when Bitcoin’s dominance decreases. This happens when altcoins gain more market share.

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At the end of the day, the FGI is just another metric to consider.

You can keep track of it through their Twitter, @BitcoinFear.

Knowing the market’s sentiment is important when you’re making financial decisions.

Now that you’re equipped with this, good luck on your investments!

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