Extreme Greed Alert: What It Means for the Crypto Market

The Fear & Greed Index just hit 76 — officially marking Extreme Greed. At first glance, this sounds like great news: prices are rising, sentiment is bullish, and everyone is excited.

But seasoned traders know better.

Extreme Greed isn’t just a sign of optimism — it’s often a warning. When greed takes over the market, prices can become overextended, driven more by hype than value. FOMO (Fear of Missing Out) leads to impulsive buying, which inflates assets beyond their fundamentals.

Here’s what history tells us:

Whenever the market enters Extreme Greed territory, a correction often follows. Why? Because smart money starts exiting quietly while retail investors keep piling in. When momentum fades, prices can drop fast — leaving the latecomers holding the bag.

So what should you do?

1. Don’t chase green candles. If you’re entering now, you’re likely late.

2. Secure profits. Consider scaling out of positions gradually. Lock in gains while the market is still hot.

3. Rebalance your portfolio. Trim exposure to high-risk assets and strengthen your long-term plays.

4. Stick to your strategy. Avoid emotional trades. If your setup isn’t clear, it’s okay to wait.

Remember: markets don’t go up forever. Periods of Extreme Greed often feel euphoric — until they don’t.

Stay sharp. When everyone else is emotional, disciplined decision-making becomes your edge. Be the trader who sees through the noise, not the one caught in the aftermath.