Flash
May 22, 2025 9:20 AM
The Fear and Greed Index hit 72 today, up from 70 yesterday.
Market sentiment remains in the “Greed” range, signaling continued bullish behavior.
The cryptocurrency Fear and Greed Index has climbed to 72, indicating that the market continues to operate in a “Greed” state, according to the latest data from Alternative.me. The index, which ranges from 0 to 100, measures overall sentiment based on a combination of volatility, trading volume, social media trends, and other market indicators.
Today's reading marks a slight increase from yesterday’s 70, reinforcing investor optimism as Bitcoin and other major assets continue to trade near multi-month highs. Historically, a higher index score suggests that investors are growing confident—or overly bullish.
The index is calculated using six weighted components: volatility (25%), market trading volume (25%), social media sentiment (15%), market surveys (15%), Bitcoin’s market dominance (10%), and Google Trends data (10%).
While a "Greed" reading typically reflects strong buying pressure, some analysts warn it can also signal a potential correction zone if the market overheats. Traders often use this index as a contrarian signal, gauging whether the sentiment is too one-sided.
Disclaimer: Backdoor provides informational content only, it is not offered or intended to be used as legal, tax, investment, financial, or other advice. Investments in digital assets involve risk, and past performance does not guarantee future results. We recommend conducting your own research before making any investment decisions.