According to Alternative.com, Fear and Greed stands at 86 today, indicating a continued state of extreme greed in the market.
The Fear and Greed Index is a measure ranging from 0 to 100 designed to gauge market sentiment. It incorporates several indicators to provide a comprehensive view of market emotions. These indicators include volatility, which accounts for 25% of the index, and market trading volume, which also contributes 25%. Additionally, social media sentiment and market surveys each make up 15% of the index. The proportion of Bitcoin in the overall market contributes 10%, while Google search trends account for the remaining 10%.
This index is a valuable tool for investors and analysts, offering insights into the prevailing mood of the market. A high index value, such as today's 86, suggests that investors are exhibiting extreme greed, which can often precede market corrections. Conversely, a low index value would indicate fear, potentially signaling buying opportunities. Monitoring these fluctuations can help market participants make informed decisions based on the collective sentiment of the market.