How is the Bitcoin Fear and Greed Index measured? In contrast, the scale at 100 dictates “extreme greed,” where investors and traders are enthusiastically buying. A value of 1 shows investor sentiment is “extreme fear.” This would be a strong bearish market, indicating Bitcoin owners are selling their assets. The Index itself is a scale from 0 to 100. How does the Bitcoin Fear and Greed Index work? It’s now a useful metric for Bitcoin investors and traders looking for a snapshot of market feeling to aid their decision-making. The concept has since been adopted for cryptocurrency.

Sentiment trends like investor fear or investor greed (equal to bearish or bullish markets, respectively) can push Bitcoin price above or below expectations of value.ĬNN developed the first Fear and Greed Index in 2011 as a tool for stock market investors.