What Does the Fear and Greed Index Mean in Crypto?
The Fear and Greed Index in cryptocurrency is an indicator that assesses market sentiment, determining whether it is in a state of fear or greed. The index ranges from 0 to 100, where 0 represents maximum fear, and 100 represents maximum greed.
It helps investors understand the market’s condition and possibly identify moments to buy or sell.
Here’s how the index levels are interpreted:
🔵 Extreme Fear (0–25): When the index shows a high level of fear, it indicates pessimism among investors. At this level, traders tend to avoid risk, which may mean potentially favorable buying prices, as assets could be undervalued.
🔵 Fear (26–49): Moderate fear suggests a cautious market sentiment. This can reflect uncertainty, and during such times, cryptocurrency prices may remain low.
🔵 Neutral (50): This indicates a balanced market where investors show neither pronounced fear nor greed. The market could move in any direction.
🔵 Greed (51–74): Greed suggests that investors are optimistic and the market is actively growing. This may indicate over-exuberance, and during such times, prices could be inflated.
🔵 Extreme Greed (75–100): Extreme greed levels indicate excessive optimism and hype. In such moments, the market could be overheated, increasing the risk of correction or price decline.
