The ups and downs of the cryptocurrency market are often not entirely determined by fundamentals; the power of sentiment also drives price fluctuations. When the market is filled with greed, investors chase prices recklessly; when fear spreads, rational judgment is often thrown aside. How can we find a rational reference point amid these emotional swings? This is precisely the core value of the Crypto Fear and Greed Index, abbreviated as F&G Index.
Why Use Numbers to Measure Market Sentiment
In traditional financial markets, sentiment indicators have been established for many years, but the cryptocurrency market, due to its diverse participants, the significant influence of retail investors, and the rapid spread of information, experiences even more intense sentiment swings. This uniqueness makes the greed index, specifically designed for the crypto market, not optional but an essential tool.
The greed index quantifies all emotional states of market participants from extreme fear to extreme greed into a scale of 0