What Is the Fear and Greed Index?

How the Fear and Greed Index Is Calculated

The crypto Fear and Greed Index was popularized by Alternative.me and is updated daily. It combines several independent data sources into a single composite score. Volatility accounts for roughly 25% of the score: when Bitcoin's price is unusually volatile relative to recent averages, that volatility is read as fear. Market momentum and volume account for another 25%: high buying volume in an up market signals greed, while low volume in a falling market signals fear. Social media sentiment — typically measured by tracking the volume and tone of crypto-related posts — contributes around 15%, as does Bitcoin dominance, which rises when investors flee altcoins for Bitcoin as a perceived safe haven within crypto.

Google Trends data for crypto-related search terms makes up a smaller portion of the composite. A surge in searches for "Bitcoin price manipulation" or "crypto crash" reflects panic; a surge in "buy Bitcoin" reflects FOMO-driven greed. Each component is normalized and weighted, then combined into the 0–100 composite. The resulting score is labeled in five bands: Extreme Fear (0–24), Fear (25–49), Neutral (50), Greed (51–74), and Extreme Greed (75–100). The index also publishes a 7-day and 30-day historical view, which can reveal whether current sentiment is an outlier or part of a sustained trend.

The index's most actionable characteristic is its mean-reversion tendency. Sustained readings at either extreme have historically been poor times to follow the crowd: extreme greed readings preceded several major crypto drawdowns, while extreme fear readings coincided with or followed market bottoms. This makes the index useful as a contrarian context signal — not a buy/sell trigger — when combined with price action, on-chain data, and macro conditions. A single day's reading carries far less signal than a prolonged run in one direction.

Key Points

• Scores of 0–24 indicate Extreme Fear (potential oversold conditions); scores of 75–100 indicate Extreme Greed (potential overbought conditions).
• The index combines volatility, market momentum, social media sentiment, Bitcoin dominance, and Google Trends into a single daily composite score.
• There are separate Fear and Greed indices for crypto (Alternative.me) and US stocks (CNN Business) — they use different inputs and frequently diverge.
• The index reflects current sentiment, not future price — it is most useful as a contrarian context signal, not a standalone trading trigger.

Learn More

Track the live index and explore the historical chart on Swoopr Trade. See Fear & Greed Index for the current score, trend history, and zone breakdowns.

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Related Questions

Does the Fear and Greed Index apply to stocks as well as crypto?

Yes, though the two are separate indicators. CNN Business publishes a Fear and Greed Index for US stock markets, drawing on seven factors including stock price momentum, market volatility (VIX), put/call ratios, junk bond demand, and safe-haven flows. The crypto Fear and Greed Index uses different inputs suited to crypto markets: Bitcoin volatility, trading volume, social media sentiment, Bitcoin dominance, and Google Trends data. The two indices are independent and often diverge.

Should I buy when the Fear and Greed Index shows extreme fear?

Extreme fear has historically coincided with local market bottoms, and some contrarian traders use it as a loose buy signal — echoing Warren Buffett's maxim to be greedy when others are fearful. However, the index is a sentiment snapshot, not a timing tool. Extreme fear can persist for weeks during sustained bear markets, and buying into falling prices can result in significant losses if the trend continues. Use the index as one context signal among many, not as a standalone trade trigger.