Fear & Greed Index Explained
The Crypto Fear & Greed Index quantifies market sentiment on a scale from 0 (Extreme Fear) to 100 (Extreme Greed).
How It's Calculated
- Volatility (25%) — High volatility signals fear
- Market Momentum & Volume (25%) — High buying volume indicates greed
- Social Media (15%) — Sentiment analysis of crypto-related posts
- Surveys (15%) — Weekly polls of market participants
- Bitcoin Dominance (10%) — Rising BTC dominance suggests fear (flight to safety)
- Google Trends (10%) — Search volume for Bitcoin-related queries
Score Ranges
| Range | Sentiment |
|---|---|
| 0–25 | Extreme Fear |
| 25–50 | Fear |
| 50–75 | Greed |
| 75–100 | Extreme Greed |
The Contrarian Approach
"Be fearful when others are greedy and greedy when others are fearful."
- Extreme Fear (0-25) has historically correlated with buying opportunities
- Extreme Greed (75-100) has often preceded corrections
The StratBase.ai Fear & Greed tracker displays the current reading and full historical data for correlation analysis.
