What is the crypto fear and greed index?

The Fear and Greed Index is used to measure investors’ sentiments towards the markets. This index reveals whether the markets are bullish or bearish, and it is constructed based on two opposing emotions, fear and greed.

Why is the cryptocurrency market so fearful and greedy?

The sentiments of buyers and sellers highly impact and influence cryptocurrency markets which further leads to a “ Fear ” and “ Greed ” kind of situation. Such sentiments in the market are triggered due to multiple reasons.

What is the state of fear and greed in Bitcoin?

Let’s understand the state of fear and greed via real-life examples: Extreme Fear: In November 2022, when Bitcoin crashed two-months low after FTX fallout, the Bitcoin Fear and Greed Index showed a value of 12, which means the extreme caution zone in the Bitcoin market.

What is the crypto market behaviour?

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. With our Fear and Greed Index, we try to save you from your own emotional overreactions. There are two simple assumptions: