Crypto Fear and Greed Index Hits Record Low
The Crypto Fear and Greed Index is a widely used measure of sentiment in the crypto market. It rates investor mood on a scale from 0 to 100, where 0 represents extreme fear and 100 represents extreme greed.
The index combines six weighted inputs: volatility (25%), trading volume (25%), momentum (25%), social media activity (15%), surveys (15%), and Google Trends data (10%). These components are compared with their average values over the last 30 and 90 days to spot deviations.
A reading of 0-24 indicates extreme fear, often signaling oversold conditions and potential buying opportunities. On the other hand, a score of 75-100 represents extreme greed, indicating overbought conditions and rising risks.