The Bitcoin Fear and Greed index hasn’t been securely in the “greed” zone since September 21, 2023.
Since Bitcoin has increased by around 40% year-to-date, the index is indicating a bullish trend as the original cryptocurrency advances after falling to a two-year low of under $16,000 in 2022.
What measurements constitute the Bitcoin/FGI?
The Bitcoin Fear and Greed Index (FGI)uses a combination of technical and fundamental analysis to measure the sentiment of the market. The index uses a variety of data points, including:
Measures the volatility of the price of Bitcoin, based on the daily standard deviation of returns.
looks at the direction of the moving averages and the gap between them.
Analyzes the trading volume of Bitcoin, looking for changes in the buying and selling pressure.
Social Media Sentiment:
Analyzes the sentiment of the online community by looking at the number of positive and negative mentions of Bitcoin in social media.
Surveys of investors and traders, to gauge their sentiment towards Bitcoin and the cryptocurrency market as a whole.
The index ranges from 0 to 100, with a higher score indicating a higher level of fear and a lower score indicating a higher level of greed. It is published by alternative. me, a website that tracks alternative investments, including Bitcoin.