Fear & Greed Index

How to read the Fear & Greed Index

The Crypto Fear & Greed Index (by Alternative.me) scores overall market sentiment on a scale of 0–100. It is calculated daily from six inputs: price volatility, market momentum, social media buzz, Bitcoin dominance, Google Trends data, and surveys.

• 0 – 25 — Extreme Fear — Investors are panicking. Historically one of the most reliable long-term buying opportunities. When the crowd sells in fear, prices are often near a cycle bottom.
• 25 – 45 — Fear — Market sentiment is bearish. Prices are typically discounted in this range — a decent environment to continue dollar-cost averaging without rushing.
• 45 – 55 — Neutral — Sentiment is balanced. No extreme signal. A steady DCA strategy works well in this range.
• 55 – 75 — Greed — Investors are getting excited. Avoid rushing in with large new positions — wait for a pullback before increasing allocation significantly.
• 75 – 100 — Extreme Greed — The market is euphoric. Historically this has preceded corrections. Avoid large new positions — wait for sentiment to cool before adding significantly.

Warren Buffett's rule applies directly: "Be fearful when others are greedy, and greedy when others are fearful." Use the index as a sentiment gauge, not a precise timing tool. Combine it with on-chain indicators like the Mayer Multiple and AHR999 for a fuller picture.

The dashed lines on the chart mark the 25, 35, 65, and 75 thresholds. The line colour follows the full five-zone scale from Extreme Fear through Fear, Neutral, Greed, and Extreme Greed.