Understanding the Bitcoin Fear and Greed Index
The Bitcoin Fear and Greed Index (CFGI) quantifies investor sentiment in the cryptocurrency market using a 0–100 scale, where:
- 0–24: Extreme Fear
- 25–49: Fear
- 50–74: Greed
- 75–100: Extreme Greed
This metric helps traders gauge whether Bitcoin is undervalued (fear) or overbought (greed) by analyzing multiple behavioral and technical factors.
Historical Values
| Period | Score | Sentiment |
|--------------|--------|-----------|
| Now | 63 | Greed |
| Yesterday| 62 | Neutral |
| 7 Days Ago| 61 | Greed |
| 1 Month Ago| 50 | Neutral |
Key Factors Influencing the Index
1. Price Score
Measures Bitcoin’s price trend (bullish/bearish). A sustained bullish trend amplifies greed, while a bearish trend fuels fear.
2. Price Volatility (0–1 Scale)
Higher volatility polarizes sentiment:
- Bull market: Volatility → Greed
- Bear market: Volatility → Fear
3. Trading Volume (0–1 Scale)
Elevated volume indicates strong market interest:
- High volume in bull markets: Greed
- High volume in bear markets: Panic
4. Impulse (-1 to 1 Scale)
Tracks recent price momentum:
- Strong bullish impulse → Greed
- Strong bearish impulse → Fear
5. Technical Analysis
Analyzes 26 popular indicators (e.g., moving averages, RSI) weighted by popularity to reflect chart-driven sentiment.
6. Social Media Sentiment
Algorithmically assesses Bitcoin’s popularity on crypto platforms using voting systems and engagement metrics.
7. Bitcoin Dominance
Tracks BTC’s market share relative to altcoins:
- Declining dominance: Altcoin investments rise (greed)
- Rising dominance: Flight to safety (fear)
8. Google Trends
Measures search interest in Bitcoin-specific terms (e.g., “buy Bitcoin”) to infer buying/ceding intent.
9. Whale Movements
Monitors large BTC/stablecoin transfers to exchanges:
- More BTC moves → Selling intent (greed)
- More stablecoin moves → Buying intent (fear)
10. Order Book Analysis
Evaluates buying/selling pressure on exchanges:
- Strong buying pressure near price → Bearish sentiment
- Strong selling pressure above price → Bullish sentiment
Live Bitcoin CFGI Score: Greed (63)
Bitcoin News Highlights
Positive Sentiment Headlines
- MARA’s Bitcoin Treasury Hits 50K BTC – Miners adopt HODL strategy (Read more).
- Whale Moves $1B BTC After 14 Years – Sparks speculation (Read more).
- Trump-Backed Bitcoin Fund Raises $220M – Bullish institutional interest.
Neutral/Negative Sentiment Headlines
- Dormant Wallets Activate – 10,000 BTC moved after 14 years.
- Whale Sell-Offs – $2B BTC transferred to exchanges.
👉 Explore real-time BTC price trends
FAQs
1. What does a “Greed” score indicate?
A score of 63 suggests investors are optimistic, but caution is advised as overbought conditions may precede corrections.
2. How does whale activity affect the index?
Large BTC moves to exchanges signal potential sell-offs (greed), while stablecoin deposits indicate accumulation (fear).
3. Why is Bitcoin dominance relevant?
Declining dominance often aligns with altcoin rallies (greed), while rising dominance reflects risk aversion (fear).
4. How accurate is the Fear and Greed Index?
While not predictive, it’s a useful contrarian indicator when combined with technical analysis.
5. Can the index predict crashes?
Extreme greed (75+) often precedes pullbacks, but timing requires additional metrics.
Conclusion
The CFGI synthesizes 10+ data points into a single sentiment snapshot. Current conditions (Greed: 63) suggest cautious optimism, but traders should monitor:
- Whale movements
- BTC dominance shifts
- Volatility spikes
For real-time updates, track the index alongside BTC price action.
Keyword focus: Bitcoin sentiment, CFGI, BTC price analysis, whale movements, market volatility.
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