Crypto Fear and Greed Index: Tracking Investor Psychology
This scale provides a simple framework for interpreting complex emotional data.
Understanding Emotional Zones in the Index
Extreme Fear
Extreme fear typically occurs during market crashes, regulatory uncertainty, or periods of macroeconomic stress. During this phase, investors often react defensively, prioritizing capital preservation over long-term strategy. Panic selling, reduced liquidity, and heightened volatility are common characteristics, as market participants attempt to exit positions quickly in response to uncertainty.
Fear
Fear reflects hesitation and caution rather than outright panic. Investors may delay decisions, reduce exposure, or wait for clearer market signals. Trading volumes often decline during this phase, as…
