Furthermore, the momentum of the market and the trading volume play a role for 25 percent, the sentiment on social media weighs for 15 percent, they look at the dominance of bitcoin and Google Trends are looked at. Normally, studies also count for 15 percent in the index, but these are currently on hold, probably because it is difficult to find enough people for this at the moment.
What does this mean for the price?
It is striking that throughout the price history of bitcoin, it has been smart to buy when the fear was great, such as today. The chart below is a so-called “heat map” of the Fear & Greed Index. The more red circles mean increasing greed and optimism, while the green and blue circles represent fear.
