{"id":162644,"date":"2025-07-14T15:00:24","date_gmt":"2025-07-14T12:00:24","guid":{"rendered":"https:\/\/cryptodnes.bg\/en\/?p=162644"},"modified":"2025-07-14T14:17:11","modified_gmt":"2025-07-14T11:17:11","slug":"here-is-how-to-read-the-crypto-fear-and-greed-index","status":"publish","type":"post","link":"https:\/\/cryptodnes.bg\/en\/here-is-how-to-read-the-crypto-fear-and-greed-index\/","title":{"rendered":"Here is How to Read the Crypto Fear and Greed Index"},"content":{"rendered":"

To help traders and analysts gauge that emotional backdrop, CoinMarketCap developed the Crypto Fear and Greed Index\u2014a straightforward, real-time indicator that measures the market\u2019s mood and sentiment.<\/p>\n

Understanding the Fear and Greed Index<\/h2>\n

The index ranges from 0 to 100, where lower values represent extreme fear and higher values reflect extreme greed. A score of 0 indicates intense panic and uncertainty among investors, while a score near 100 signals overwhelming optimism and speculative fervor. By tracking this single metric, investors can quickly assess whether the market is likely undervalued or overheated\u2014two states that often precede major market moves.<\/p>\n

What does it mean when the index is below or above 50?<\/h2>\n

When the index dips below 50, it reflects growing fear in the crypto market. This typically means that traders are hesitant, capital is fleeing risky assets, and sentiment is bearish. Extremely low readings\u2014especially below 25\u2014can signal capitulation, where investors may be panic-selling. Ironically, these moments of widespread fear often present the best long-term buying opportunities for bold investors.<\/p>\n

\"\"<\/p>\n

On the other hand, a score above 50 suggests that greed is entering the market. Traders are more confident, risk appetite rises, and bullish sentiment prevails. Once the index crosses 70, it enters what\u2019s considered a \u201cgreed zone,\u201d where market euphoria may push prices to unsustainable levels. If the reading moves beyond 80, the market could be nearing a local top, as excessive greed has historically preceded corrections.<\/p>\n

Current sentiment and market context<\/h2>\n

At the time of writing, the CMC Fear and Greed Index sits at 70, placing it firmly in the \u201cGreed\u201d category. Just a week ago, the index read 52\u2014classified as neutral. This sharp rise reflects the broader crypto rally, with Bitcoin recently surpassing $120,000. The last time sentiment reached such elevated levels was in November 2024, when the index hit a yearly high of 88, categorized as \u201cExtreme Greed.\u201d<\/p>\n

How to use the index in your strategy<\/h2>\n

The index is widely used for market sentiment analysis, helping investors gauge the overall mood before making trades. Some adopt a contrarian strategy, choosing to \u201cbe fearful when others are greedy and greedy when others are fearful.\u201d In this approach, extreme readings serve as counter-signals: high greed might suggest it\u2019s time to take profit, while deep fear may present undervalued opportunities.<\/p>\n