How Accurate is Crypto "Fear and Greed Index"?
The Fear and Greed Index was developed by CNNMoney to measure the two of investors' main emotions, which can drive the stock market, by evaluation the 7 indicators: stock price momentum, stock price strength, stock price breadth, put and call options, junk bond demand, market volatility and save haven demand.
Similarly the Crypto Fear and Greed Index was developed to "analyze emotions and sentiments from different sources and crunch them into one simple number: The Fear & Greed Index for Bitcoin and other large cryptocurrencies". At this time the platform only offers the index for Bitcoin, which is a good representation of the overall crypto market emotional state.
The data is gathered from different sources to include the following factors: 25% Volatility, 25% Market Momentum/Volume, 15% Social Media, 15% Surveys, 10% Dominance and 10% Google Trends.
Source:https://money.cnn.com/investing/about-fear-greed-tool/index.html
Source:https://alternative.me/crypto/fear-and-greed-index/
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