Cryptocurrency Index of Fear and Greed (Crypto Fear & Greed Index)
Daily analysis of emotions and moods crypto investors in different sources. Based on these data, a cryptocurrency index of fear and greed is formed.
Cryptocurrency Index of Fear and Greedmeasured in the range from 0 to 100. Where 0 is absolute fear (everyone is trying to sell cryptocurrency in order to get at least something), 100 is absolute greed (everyone is buying cryptocurrency, despite the risks).
The cryptocurrency index of fear and greed is built on the basis of the following indicators:
1) Volatility (25%). The ratio of the current volatility of cryptocurrency markets is measured in comparison with the previous 30 and 90 days. If there is an unusual jump, then this is a certain signal.
2) Market trading volumes (25%). A sharp increase in trading volumes of this or that cryptocurrency in comparison with the previous 30 and 90 days indicates the mood of people. Naturally in conjunction with specific actions: buying or selling.
3) Communication in the social. networks (15%). The words and phrases used in open groups are analyzed. The more panic words - the greater the fear. The more optimistic, the higher the greed.
4) Polls (15%). Several thousand investors are polled daily and their opinion affects the overall index.
5) The dominance of Bitcoin (10%). Most often, people in fear begin to transfer funds from altcoins to Bitcoin. The more Bitcoin dominates the market, the higher the fear index.
6) Google trends (10%). It analyzes the number of certain queries to the Google search engine. For example, the sharp rise in the “Bitcoin price manipulation” requests clearly indicate that people are worried and do not trust current prices.
Crypto Fear & Greed Index Is a dynamic quantity, so we will publish this parameter in the daily release of crypto statistics on the Smart-Lab blog, as well as on our t-channel: https://t.me/BitJackass