Fear and Greed Index

Beyond the simple 0-100 reading, the Fear and Greed Index works by folding several independent signals into one weighted daily score, so no single metric can distort the result. The best-known version, run by Alternative.me since 2018, tracks Bitcoin specifically and blends volatility (25%), trading volume and momentum (25%), social media activity (15%), Bitcoin dominance (10%) and Google search trends (10%), with a survey component (15%) that has long been paused. A separate market-wide index widens the lens to the top ten coins and layers in options put/call ratios and stablecoin supply data for a market-wide view rather than a Bitcoin-only one.

Each reading gets a label: Extreme Fear (0-24), Fear (25-44), Neutral (45-55), Greed (56-75) or Extreme Greed (76-100). Traders watch the extremes rather than the day-to-day wobble, since prolonged Extreme Fear has historically coincided with local price bottoms, while stretches of Extreme Greed often precede sharp pullbacks; across past cycles, readings in the high 80s and 90s have clustered near market tops, and single-digit readings near major bottoms.

The index is a snapshot of crowd emotion, not a trading signal on its own. It says nothing about fundamentals, and sentiment can stay irrationally extreme for weeks. Most traders pair it with volatility data, on-chain metrics or price action before acting on it.