Crypto Fear & Greed Index: Decoding the Surging Market Optimism at 75

Key Points

1. The Crypto Fear & Greed Index measures market sentiment on a scale from 0 (Extreme Fear) to 100 (Extreme Greed), with 75 indicating strong optimism ('Greed').

2. The index is calculated using six weighted factors: volatility (25%), market momentum/volume (25%), social media sentiment (15%), surveys (15%, currently paused), Bitcoin dominance (10%), and Google Trends (10%).

3. High volatility often signals fear, while high buying volume and strong momentum typically indicate greed.

4. Historical trends show that extreme readings (high greed or fear) often precede market corrections or rallies, though the index is not a predictive tool.

5. The index is one of many tools investors should use, alongside broader economic and regulatory factors, to make informed decisions.