When the index is high, indicating a state of “Extreme Greed,” it signals that investors are getting overly optimistic. Legendary stock market investor Warren Buffett hit the nail on the head: “Be fearful when others are greedy and greedy when others are fearful.” The easiest way to take advantage of the Crypto Fear and Greed Index is to remember that it’s a contrarian indicator. How to Use the Crypto Fear and Greed Index Google Trends data provides a measure of the public’s interest in Bitcoin, which can be a helpful indicator of the overall sentiment toward the crypto market. The logic is simple: the more people are searching for Bitcoin, the more interest there is in the crypto market, signaling rising greed. The final piece of the puzzle in calculating the Crypto Fear and Greed Index is trends, specifically trends in Google searches for Bitcoin. In some circles, low BTC dominance means we’re in the midst of an altcoin season, where Bitcoin liquidity trickles down to prominent cryptocurrencies like Ethereum and BNB Coin before rotating to through to mid-caps and micro-caps.
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