Crypto Fear & Greed Index: Decoding Market Sentiment’s Powerful Grip

Key Points

1. The Crypto Fear & Greed Index ranges from 0 (Extreme Fear) to 100 (Extreme Greed) and provides a snapshot of market sentiment.

2. A score of 67 indicates the market is in the 'Greed' zone, suggesting potential overvaluation and FOMO-driven buying.

3. The index is a weighted average of six factors, including volatility, market momentum, and social media activity.

4. Limitations include its inability to account for regulatory news, technological developments, and whale movements, which can override index signals.

5. Investors should use the index as a complementary tool alongside other analyses rather than a definitive buy/sell indicator.