Live crypto market sentiment, 0 to 100.
The Fear and Greed Index aggregates market volatility, momentum, social media activity, Bitcoin dominance, and search trends into a single daily sentiment score. Extreme fear often marks market bottoms. Extreme greed often marks market tops. The gauge below shows the current value, plus comparisons to yesterday, last week, and last month, and a 30-day history chart.
Change over time
30-day history
What is the crypto Fear and Greed Index?
The Fear and Greed Index is a composite sentiment indicator that translates several market data streams into a single number between 0 and 100. It was inspired by the long-running CNN Business Fear and Greed Index for US equities, adapted for the unique dynamics of cryptocurrency markets. The version most widely cited today is published by alternative.me and updates once per day.
The interpretation is straightforward. A reading near 0 means investors are in a state of extreme fear. Prices are falling, holders are capitulating, social sentiment is negative, and volume is spiking as sellers exit. Historically, these moments have marked local and cycle bottoms, and long horizon investors who bought when the index was near single digits generally outperformed those who waited for confirmation.
A reading near 100 means investors are in a state of extreme greed. Prices are rising quickly, media coverage is euphoric, social sentiment is aggressively bullish, and trading volume is concentrated in speculative alt coins. Historically, these moments have marked local and cycle tops. The index does not call exact turning points, but extreme readings in either direction are typically followed by mean reversion over multi-week or multi-month horizons.
How the index is calculated
The alternative.me index uses six underlying components, each weighted according to its historical predictive power. The weights are fixed and documented, and the component-level data is publicly available.
| Component | Weight | What it measures |
|---|---|---|
| Volatility | 25% | Compares current Bitcoin volatility and maximum drawdowns to the average over the past 30 and 90 days. Unusually high volatility pushes the index toward fear. |
| Market momentum | 25% | Compares current market volume and momentum to the 30/90 day average. High buying volume during rallies pushes the index toward greed. |
| Social media | 15% | Analyzes Twitter (X) interaction rates and hashtag volumes for major crypto terms. Unusually high social engagement often correlates with greed phases. |
| Bitcoin dominance | 10% | Rising BTC dominance typically signals fear (flight to quality). Falling dominance (altcoin rallies) signals greed and speculation. |
| Trends | 10% | Google Trends data for Bitcoin related queries and especially for terms like “bitcoin price manipulation” which rise during fear periods. |
| Surveys | 15% | Weekly polls of retail investor sentiment across major platforms. Currently paused on the public index, but still part of the documented methodology. |
Each component is normalized to a 0 to 100 scale using a rolling comparison against its own recent history. Then the components are combined using the weights above. The result is the final daily reading you see on the gauge. The weights have not changed significantly since the index launched, which makes multi-year comparisons meaningful.
How to use Fear and Greed for trading
The most straightforward use is as a contrarian signal at the extremes. Readings below 20 (extreme fear) have historically been favorable entry points for long horizon capital. Readings above 80 (extreme greed) have historically preceded drawdowns. The further from neutral, the stronger the historical signal, though the signal has always been probabilistic, not deterministic.
Practical implementations vary. One common approach is to bias dollar-cost averaging: buy a larger amount when the index is in extreme fear territory, buy a smaller amount (or pause) when it is in extreme greed. This captures the qualitative insight without requiring precise timing. Our DCA calculator models the basic DCA approach. Users who want to weight their DCA by fear and greed can apply the index values manually to each purchase.
Another approach is as a risk filter for active trading. During extreme greed, reduce position sizing and tighten stops. During extreme fear, consider building long exposure systematically. The index does not replace trade setup analysis, but it provides a sentiment context that pairs well with technical and on-chain signals.
The least effective use is as a standalone entry or exit trigger. Extreme readings can persist for weeks, and acting on the first day of a fear reading often produces drawdowns if the fear continues to deepen. Pair the index with other inputs, and size positions so that being early is not financially catastrophic.
Historical extremes
A handful of truly extreme readings have marked generational turning points in the crypto market. The table below lists the most notable.
| Value | Date | Context |
|---|---|---|
| 6 | June 18, 2022 | Bottom of the Luna/3AC/Celsius contagion. Bitcoin traded near $17,600. One of the lowest readings in index history. Market doubled within 12 months. |
| 8 | December 22, 2018 | End of the 2018 bear market. Bitcoin near $3,200. Early buyers during this window saw 20x returns by late 2021. |
| 10 | March 16, 2020 | COVID panic sell-off. Bitcoin briefly under $4,000. Index hit single digits for about a week before recovering. |
| 84 | November 9, 2021 | Bitcoin all-time high near $69,000. Index sat in extreme greed for weeks before the reversal. |
| 92 | January 14, 2018 | Peak of the initial coin offering mania. Most assets were about to lose 90 percent over the following 12 months. |
| 95 | February 21, 2021 | Peak of the Robinhood-era retail frenzy. Coincided with the initial wave of DeFi summer capital rotation. |
The lowest reading ever recorded (6, June 2022) coincided with the collapse of Luna, 3AC, and Celsius, and marked the bottom of the 2022 bear market. Bitcoin doubled within 12 months. The highest readings (90+) appeared near the January 2018 ICO peak and the February 2021 retail frenzy, both followed by multi-year drawdowns exceeding 70 percent.
Combining with other indicators
Fear and Greed is most useful when combined with complementary signals rather than used in isolation. A few pairings that historically add information:
- Bitcoin MVRV ratio. On-chain metric that compares market value to realized value. When MVRV is below 1 (undervalued) and Fear and Greed is in extreme fear, the combination has historically been a very strong long-term buy signal.
- Funding rates. Persistently negative funding across perpetual futures suggests shorts are paying longs, which often marks capitulation phases. Combined with a single-digit Fear and Greed reading, this is among the more reliable bottom signals.
- Stablecoin supply. Rising stablecoin market cap during fear periods indicates sidelined capital accumulating and waiting to deploy. This provides mechanical pressure that tends to support prices when sentiment eventually recovers.
- Macro liquidity. Crypto tends to underperform during tightening liquidity cycles. An extreme fear reading during a tightening macro cycle may persist longer than one during a loosening cycle. Context matters.
Warren Buffett’s contrarian principle
Warren Buffett is widely quoted for the principle: “be fearful when others are greedy, and greedy when others are fearful.” Written decades before crypto existed, the principle applies cleanly to any market driven by collective human psychology. Fear and Greed is effectively a quantification of the conditions Buffett was describing.
The difficulty with the principle is not understanding it. Most investors agree in theory that buying during panic and selling during euphoria is the correct approach. The difficulty is execution. Buying during extreme fear feels terrible, because everyone around you is telling you that prices will keep falling and that buying now is stupid. Selling during extreme greed feels like leaving money on the table, because the narrative is that this time is different and the rally will continue indefinitely.
This is why a numerical sentiment indicator helps. It provides an anchor that persists through the emotional pressure of the moment. When the index hits single digits, you can reference this page and confirm that history suggests this is the favorable side of the trade, even if the daily news flow is overwhelmingly negative. Similarly at the other extreme.
Limitations of the index
No single indicator captures everything, and the Fear and Greed Index is no exception. Key limitations to understand before relying on it:
- Bitcoin-centric. The index weighs Bitcoin-specific volatility and dominance heavily. For altcoin-focused portfolios, sentiment can diverge significantly from the headline reading.
- Slow updating. Daily cadence means it misses intraday capitulation events entirely. Short-term traders need faster signals.
- Backward looking. All components use historical data. Prolonged regime changes (like the transition from proof of work to proof of stake for Ethereum, or the approval of spot Bitcoin ETFs) can invalidate historical baselines for months.
- Not a trading system. Extreme readings are not automatic triggers. The index adds context but does not replace independent analysis.
- Survey component is inconsistent. The weekly survey component has been paused on some versions of the public index, making the score slightly noisier than the documented methodology suggests.
- Does not account for fundamentals. A coin can have extreme fear sentiment and genuinely deserve it (failing protocol, team departures, regulatory issues). The index measures crowd sentiment, not underlying quality.
Use the index as one input in a disciplined framework rather than a standalone decision maker, and it will add real value. Rely on it alone, and it will occasionally be expensive.
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Frequently asked questions
What does the Fear and Greed Index measure?
The Fear and Greed Index aggregates several market indicators into a single score between 0 and 100 to represent overall crypto market sentiment. Low values (0 to 24) indicate extreme fear, meaning investors are panicked, selling aggressively, and prices are likely undervalued relative to recent norms. High values (75 to 100) indicate extreme greed, meaning investors are euphoric and prices are likely stretched.
How often does the index update?
The alternative.me index updates once per day, typically around midnight UTC. Other providers produce intraday updates, but the daily cadence is widely used because sentiment tends to shift slowly at the market level. The live reading on this page reflects the most recent daily update and is cached for one hour at a time.
Should I buy when the index is low?
A low reading historically has been a favorable entry point for long horizon buyers, but it is not a reliable timing signal on its own. Extreme fear readings can persist for weeks or months during prolonged bear markets. Use the index as one input among several (on-chain data, macro environment, personal conviction), not as an automatic trigger.
What is the most extreme value ever recorded?
The alternative.me index has ranged from single digit lows near 5 to 6 during capitulation events (the June 2022 Luna/Celsius collapse produced the widely cited 6 reading) to highs in the low 90s during the January 2018 ICO peak and February 2021 retail frenzy. Values below 10 or above 90 are rare and historically have coincided with significant market turning points.
Can I use Fear and Greed for short-term trading?
Short-term traders generally find the daily cadence too slow for their timeframe. The index is better suited to multi-week or multi-month decisions. For intraday and swing trading, more responsive indicators like funding rates, open interest, and order book imbalances matter more.
Why does the index matter more for contrarians?
The index essentially quantifies what most market participants are feeling. When everyone feels extreme fear, most weak hands have already sold. When everyone feels extreme greed, most sidelined capital has already deployed. Contrarian strategies work because markets do not reward doing what feels most comfortable. Being right often requires being uncomfortable, and the index is one way to measure your positioning relative to the crowd.
Is there a similar index for individual stocks?
CNN Business operates a long-running Fear and Greed Index for US equities, which the crypto version takes inspiration from. The two tools are independent and measure different inputs. The equity index uses momentum, volatility, safe haven demand, junk bond demand, and related measures. The crypto index uses the components listed in the table above.
Where does the data come from?
The alternative.me index combines data from market volatility, trading volume, social media sentiment (Twitter hashtag and interaction analysis), Bitcoin market dominance, and Google Trends search queries. The methodology and component weights are published on the alternative.me documentation page.
Related reading
For deeper analysis of sentiment turning points and the macro environment around them, see our market analysis desk and Bitcoin archive. For daily coverage of the stories that move sentiment, subscribe to our free newsletter.
