The Smart Money Fear & Greed Index combines futures positioning, capital flows and macro conditions. Funding, outstanding contracts and liquidations add context to price movements and public sentiment. The headline reading is a 7-day average.
Different inputs and time windows can produce different readings. The gap alone does not establish the next price direction.
Components of a widely used Bitcoin sentiment index
Ten components with their individual scores
The display compares perps and spot for the same Bitcoin pair on one trading venue. It measures activity in those markets. The volume ratio alone does not establish which market leads Bitcoin price discovery.
Funding describes recurring payments between longs and shorts. Open interest measures outstanding contracts or their notional value. Long/Short here describes accounts, rather than the size of their positions.
A liquidation closes a position when its collateral no longer meets requirements. Closing longs can create selling pressure, while closing shorts can create buying pressure. These figures describe such events across the covered markets.
ETF flows show reported fund movements. Stablecoin supply and the US spot premium provide further context. More stablecoins do not automatically mean new Bitcoin buying; a price premium is not a direct capital flow either.
Bitcoin dominance can rise when Bitcoin gains more than altcoins. It can also rise when altcoins fall further. Its change alone therefore cannot establish a single sentiment reading. This index uses other components.
A reading can be unusual in one market environment and normal in another. Components are therefore compared with their own previous 365 days. VIX and the dollar trend add context. The main index smooths daily readings over seven days.