#MarketGreedRising $SOL #Solna
Market greed risk refers to the potential for excessive optimism, overconfidence, and risk-taking in financial markets when investors are driven more by fear of missing out (FOMO) than by rational analysis.
When market greed is high:
Investors often chase rising prices without considering fundamentals.
Demand for risky assets increases, pushing prices beyond their intrinsic value.
Speculation and over-leveraging become common, increasing vulnerability to sudden corrections.
Emotional decision-making overrides careful risk assessment.
It’s often measured using indicators like the Fear & Greed Index, which combines metrics such as market momentum, volatility, trading volume, and safe-haven demand.
Key risk:
When greed dominates, markets may enter a bubble phase — eventually leading to sharp declines when sentiment shifts back toward fear.
If you want, I can also explain the full scale of fear-to-greed stages so you can see how greed fits into the market psychology cycle.