What is a Bitcoin Fear & Greed Index?
A Fear & Greed Index combines several observations about market sentiment into a single number. Low values represent fear and high values represent greed. The data behind the calculation determine what that number actually tells you about Bitcoin.
What the 0 to 100 scale means
The Smart Money Fear & Greed Index runs from 0 to 100. Values below 25 indicate extreme fear; 25 to below 45, fear; 45 to below 55, neutral; 55 to below 75, greed; and 75 or above, extreme greed. These boundaries belong to this index. Other sentiment measures may define their zones differently.
The number condenses the market data used in the calculation. A reading of 80 means neither that 80 percent of investors are optimistic nor that Bitcoin has an 80 percent chance of rising. The difference between two readings is not an expected Bitcoin return either.
What the Smart Money index measures
The Smart Money Fear & Greed Index focuses on Bitcoin futures. Funding, changes in open interest, long/short ratios and liquidations describe different aspects of positioning. Capital-flow data, macro conditions and price momentum add further context.
Components are compared with their own recent history to assess how unusual a reading is in that market environment. Smart Money is the name of this index. The overall score does not directly track the portfolios of individual professional investors.
Why the main number is a 7-day average
Individual daily readings can move sharply. The main number therefore shows a 7-day average. Smoothing reduces brief spikes and makes persistent changes easier to see. It also means the index responds more slowly to a new development than an individual daily reading.
When comparing Bitcoin fear and greed today with yesterday or a week ago, use the same series throughout. A smoothed reading and an unsmoothed daily reading describe different time windows. Check the data timestamp as well: reloading the page does not necessarily mean that new market data are available.
How fear and greed provide context
Fear can persist during a falling market, while greed can accompany a sustained uptrend. An extreme zone alone therefore cannot reliably identify a turning point. The recent path of the index and changes across its components help explain the current reading.
The current zone describes how the measured conditions compare with their own history. It does not, on its own, answer where Bitcoin will trade next. The index page shows the latest reading, comparisons with earlier days and the individual components.