The Crypto Fear & Greed Index (0-100) aggregates: price volatility (25%), market momentum (25%), social media sentiment (15%), Bitcoin dominance (10%), Google Trends (10%), and surveys (15%). It's a composite of market psychology. 0 = extreme fear, 100 = extreme greed.
Warren Buffett: "Be fearful when others are greedy, be greedy when others are fearful." The same applies in crypto. Index at 10-25 (Extreme Fear): historically some of the best buying opportunities. Index at 80-95 (Extreme Greed): historically near market tops. Not perfect — but a useful check on your emotions.
March 2020 crash: Index hit 8 (Extreme Fear) — BTC was at $4,000 before rising 20x. November 2021 top: Index at 82 (Greed) — BTC hit $69K then fell 77%. June 2022 bottom: Index at 6 (Extreme Fear) — BTC at $17,500. Pattern: extreme fear = buy, extreme greed = de-risk.
Current index: 53 (Neutral — slowly rising). Not fearful enough to be a screaming buy, not greedy enough to signal a top. This is actually a healthy setup — the market hasn't priced in euphoria yet. Monitor for the index climbing above 75 — that's when to start taking profits in tranches.
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