Crypto Fear & Greed Index: Unveiling Crucial Market Sentiment Shifts

Key Points

1. The Crypto Fear & Greed Index synthesizes data from six metrics to provide a snapshot of market sentiment, ranging from 0 (extreme fear) to 100 (extreme greed).

2. A score of 71 indicates the market is in the 'Greed' zone, suggesting strong optimism and buying interest, but not yet at 'Extreme Greed' levels (75-100).

3. The index is useful for contrarian investing, helping identify potential buying opportunities during extreme fear and caution during extreme greed.

4. Limitations of the index include its reliance on historical data and the need for investors to combine it with other analysis methods.

5. Historical examples show the index accurately reflected extreme fear during market lows (e.g., 2018, March 2020) and extreme greed during peaks (e.g., 2017, early 2021).