Crypto Fear & Greed Index Plummets to 55: What it Means for Your Investments

Key Points

1. The Crypto Fear & Greed Index ranges from 0 (Extreme Fear) to 100 (Extreme Greed), with 55 indicating moderate bullishness.

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

3. A high score (above 75) suggests 'Extreme Greed' and potential overvaluation, while a low score (below 20) indicates 'Extreme Fear' and possible undervaluation.

4. The index is primarily based on Bitcoin's market behavior but indirectly reflects altcoin sentiment due to Bitcoin's market influence.

5. The index is updated daily but should not be the sole basis for investment decisions, as it has limitations like Bitcoin-centric data and reliance on subjective components like surveys and social media.