Bitcoin(BTC) Fear and Greed Index

Bitcoin(BTC) Fear and Greed Index is a sentiment analysis tool designed to capture the emotional behavior of investors in the cryptocurrency market.

Traders and investors use the Fear and Greed Index to guide their strategies in several ways:

- Identify Market Tops or Bottoms: Extreme greed (above 75) may suggest overbought conditions and a potential market top. Extreme fear (below 25) could indicate oversold conditions and a possible market bottom.

- Support Timing Decisions: The index helps refine buy/sell timing by revealing the overall market mood. For example, value investors may consider buying when fear dominates and others are selling.

- Trend Confirmation: Combined with price charts or technical indicators, the index can confirm trends. If price is rising but the index is neutral or fearful, it may suggest weak momentum or hidden bearish sentiment.

- Risk Management: By being aware of emotional extremes, traders can adjust their position sizing, take profits, or tighten stop losses.

While the index is not a crystal ball, it provides useful psychological context for market behavior—especially when paired with technical and fundamental analysis.

The BTC Fear and Greed Index is derived from a comprehensive blend of multiple market indicators, designed to reflect the overall emotional state of cryptocurrency investors. Each indicator contributes a unique perspective on how market participants are reacting to price movements, media narratives, and broader macro trends. Here’s a detailed breakdown of the core components:

This component measures Bitcoin’s short- and mid-term volatility, focusing on recent price swings and maximum drawdowns compared to the 30-day and 90-day historical averages. A spike in volatility—especially during a market downturn—often reflects fear-driven behavior, as traders react to uncertainty and potential downside risks.

This metric compares current market momentum and trading volumes against historical benchmarks. A surge in buying volume during a rising market often indicates excessive greed or speculative overconfidence. On the other hand, low volume in a declining market may reflect apathy or fear of further losses.

Social channels such as Twitter (X) are scanned for crypto-related hashtags, keywords, and user engagement. A sharp rise in mentions or interactions surrounding a particular coin may signal heightened public interest, often driven by hype, fear of missing out (FOMO), or speculative greed.

This metric analyzes how much market capitalization a particular coin holds relative to the overall crypto market. For Bitcoin, increasing dominance may reflect risk-off sentiment, as investors retreat from altcoins into BTC as a safer haven. A decrease in Bitcoin dominance often suggests growing risk appetite and a shift toward speculative altcoin plays—typically a sign of greed. For individual altcoins, rising dominance may indicate strong bullish sentiment specific to that coin.

This indicator pulls in Google Trends data for popular crypto search terms (e.g., “Bitcoin crash,” “how to buy crypto”), tracking changes in global interest. Spikes in search volume may correspond to sudden fear or excitement in the market, giving insight into what the broader public is currently focused on.

These components are normalized and weighted to produce a single score ranging from 0 (Extreme Fear) to 100 (Extreme Greed). The index is updated daily and provides a simplified, data-driven snapshot of investor sentiment across the cryptocurrency market.