Live market sentiment scored 0–100. Extreme fear has historically been a buying signal. Extreme greed signals caution.
The Bitcoin Fear and Greed Index is a daily composite sentiment indicator published by alternative.me. It distills complex market signals into a single number from 0 (extreme fear) to 100 (extreme greed), giving investors a quick read on whether the market is being driven by panic or euphoria.
The concept is borrowed from the CNN Fear & Greed Index used in traditional markets, and adapted specifically for cryptocurrency. It was first popularised in the Bitcoin community as a contrarian indicator — a signal to buy when others are fearful and exercise caution when others are greedy.
The index combines six data sources with individual weightings:
Price Volatility (25%) — Current Bitcoin volatility compared to 30 and 90-day averages. High volatility signals fear.
Market Momentum & Volume (25%) — Current volume and momentum versus recent averages. Rising volume and price signal greed.
Social Media (15%) — Twitter and Reddit post volume and sentiment analysis around Bitcoin hashtags.
Bitcoin Dominance (10%) — Rising BTC dominance signals fear in altcoins, with capital rotating to the perceived safety of Bitcoin.
Google Trends (10%) — Search volume for Bitcoin-related queries, particularly searches for "Bitcoin price manipulation."
Surveys (15%) — Weekly polling of crypto investors, though this component is currently paused.
The index is most useful as a contrarian signal for long-term investors. Historically, the best Bitcoin buying opportunities have occurred during periods of extreme fear — when prices have already fallen significantly and pessimism is at its peak. Conversely, extreme greed readings have often preceded market tops or short-term corrections.
That said, the index should never be the sole basis for investment decisions. It reflects current sentiment, not fundamentals — and sentiment can stay extreme for extended periods during strong bull or bear markets.
The Fear and Greed Index is a lagging-to-coincident indicator. It reflects what has happened, not what will happen. During strong trends, the index can stay in extreme territory for weeks or months. It is best used in combination with on-chain metrics like MVRV ratio, hashrate trend, and halving cycle position to build a more complete picture of market conditions.