The Crypto Fear & Greed Index is a market sentiment indicator specifically designed for the cryptocurrency market, primarily focused on Bitcoin. It measures the dominant emotions driving investor behavior—fear (leading to selling and caution) or greed (leading to buying and optimism).
The index produces a single score from 0 to 100
• 0–24
Extreme Fear (investors are overly worried, potential buying opportunity)
• 25–49
Fear
• 50–74
Greed
• 75–100
Extreme Greed (investors are overly optimistic, potential market correction ahead)
The core idea is contrarian
Extreme fear often signals undervaluation (time to buy), while extreme greed signals overvaluation (time to sell or be cautious). It's inspired by CNN's traditional stock market Fear & Greed Index but tailored to crypto's unique volatility.
The most widely referenced version is from alternative.me, though variations exist (e.g., CoinMarketCap, CoinGlass).
How is it Calculated?
The alternative.me index aggregates data from multiple sources, each weighted equally where possible or as specified
• Volatility (25%)
Compares current Bitcoin price volatility to 30/90-day averages. High volatility = more fear.
• Market Momentum/Volume (25%)
Analyzes trading volume and price momentum vs. recent averages. High buying volume in rising markets = greed.
• Social Media (15%)
Sentiment from platforms like X (Twitter) interactions and hashtags related to Bitcoin.
• Bitcoin Dominance (10%)
Rising BTC dominance (vs. altcoins) often signals fear (flight to safety).
• Google Trends (10%)
Search volume for Bitcoin-related terms (e.g., spikes in "Bitcoin crash" indicate fear).
• Surveys (15%, currently paused)
Past weekly polls on market sentiment.
Data is updated daily, focusing mainly on Bitcoin but reflecting broader crypto sentiment.
Other versions (e.g., CoinMarketCap) use similar factors like price momentum, volatility indices, and proprietary social data.
How to Interpret and Use It
• Extreme Fear (e.g., below 25)
Markets may be oversold—historically a rebound signal (contrarian buy).
• Extreme Greed (above 75)
Markets may be overbought—risk of pullback.
• It's a sentiment tool, not a price predictor. Best used with technical/fundamental analysis.
• Historically, prolonged extreme fear has preceded bull runs, and extreme greed has preceded corrections.
Here's an example of the historical index overlaid with Bitcoin price trends
Note
As of December 27, 2025, the alternative.me index is around 23 (Extreme Fear), reflecting caution after recent market pullbacks. This is not financial advice—crypto is volatile; always do your own research.
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