Crypto Fear & Greed Index: Reading Market Sentiment

The Crypto Fear & Greed Index is a composite sentiment score from 0 (Extreme Fear) to 100 (Extreme Greed), built from a mix of factors including volatility, market momentum, social media sentiment, and survey data. It measures psychology, not fundamentals or flow - it can be wrong about direction, but it's rarely wrong about the crowd's emotional state. Why it matters: the index is most useful at its extremes. Extreme Fear often coincides with capitulation - the point where most of the selling has already happened. Extreme Greed often coincides with over-leveraged, overconfident positioning that's vulnerable to a shakeout. The middle of the range (40-60) carries little signal either way. BTCWEAPON.COM never uses Fear & Greed alone - it's always shown alongside hard flow data (whale trades, liquidations, funding rate) so a sentiment extreme is only treated as meaningful when it lines up with what the actual order flow is doing.