Fear and Greed Index exceeds 90: A worrying signal?

Currently, the Fear & Greed Index of the cryptocurrency market has surpassed 90, indicating that a greedy sentiment is engulfing the entire market. This extreme level of greed often correlates with a high phenomenon of FOMO (Fear of Missing Out), as investors rush to buy in fear of missing the opportunity.

Meaning of excessively high greed index

• The market is too hot: When the greed index exceeds 90, it reflects excessive optimism, often a result of asset prices rising sharply in a short period.

• Potential adjustment signal: History shows that when greed sentiment reaches a peak, the market often faces a major correction. This occurs due to investors taking profits, or intrinsic factors that cannot support excessively high prices.