What is the Fear & Greed Index?
Quick Answer
A daily 0–100 score summarizing crypto market sentiment from volatility, momentum, social media, and dominance data. Low numbers mean fear; high numbers mean greed.
TL;DR
0 = extreme fear, 100 = extreme greed. A sentiment thermometer, not a buy/sell signal.
Key Takeaways
- 1Combines volatility, volume, social buzz, and dominance into one number
- 2Extreme readings historically mark emotional — not rational — markets
- 3It describes the present mood, it doesn't predict tomorrow
- 4Most useful as a check on your own emotions
Full Explanation
The index condenses several market signals — price volatility, trading momentum, social media activity, Bitcoin dominance, and search trends — into a single daily number from 0 (extreme fear) to 100 (extreme greed). It exists because crypto markets are unusually sentiment-driven, and a thermometer for that sentiment is genuinely useful.
The classic reading follows Buffett's line about being fearful when others are greedy: historically, extreme-fear readings have clustered near local bottoms and extreme greed near overheated tops. But 'historically clustered' is not 'reliably predicts' — the index can sit in extreme zones for weeks while prices keep trending.
Its best use is personal: when you feel an urgent need to buy, check whether the market is at 85 — your urgency may just be the crowd's greed passing through you. Our live gauge tracks today's reading with history, and you can share the day's snapshot as an image.