The Crypto Fear & Greed Index spiked all the way up to 74 on August 8 – Extreme Greed. This leap sent it well into the “Greed” territory locking in a bullish market mood. This major movement marks a definitive surge in optimism and overall faith from investors into the rapidly growing cryptocurrency space. The index, which measures the market’s wind direction based on a wide array of factors to determine emotional pulses on the market, jumped more than 12 points overnight.
The Crypto Fear & Greed Index is a composite made of six major components, scored out of 100 and combined. These are volatility, market momentum & volume, social media sentiment, Bitcoin dominance, surveys, and Google Trends. Together, each element cuts through the noise and hype to offer a clearer picture on underlying market behavior and bundled investor perception.
Perhaps the clearest evidence of the drop in anxiety among investors is in the index’s largest component—volatility, which measures 25% of the index. The drop in volatility translates to a less tempestuous market atmosphere, creating an environment of higher trust among traders and investors alike.
That upside volume and positive momentum has played a huge role in creating this illusion of true market confidence. Higher trading volume and positive momentum Weight = 25% The Crypto Fear & Greed Index is based on metrics including increasing trading volume and positive momentum. Social media engagement has skyrocketed, and Google search activity for cryptocurrencies is climbing. These rises furthered the fire of the index’s growth.
A score of 74 suggests that optimism is rising across the crypto space, signaling a shift from fear to greed among investors. First, investors are less reticent and more eager to engage in the market, setting the stage for greater investment activity. The overall cryptocurrency market has been especially bullish.
