From Fear to FOMO: Crypto’s Market Mood Ring Flashes Near ‘Greed’

CN
4 hours ago

The digital asset economy has kicked upward again, and bulls look like they’re gearing up to keep the ride going. At press time, coinmarketcap.com’s (CMC) Fear and Greed Index clocked in at 59 out of 100—technically tagged as “neutral,” though that’s the kind of neutral that already has one foot dangling in greedy territory.

At the start of October, CMC’s index was sitting at 51. Fast-forward a few days to Oct. 4, and it’s climbed about 15.69%. CMC’s Fear and Greed Index (CMC FGI) runs on a simple but telling scale from 0 to 100—think of it as crypto’s mood ring. A low score screams “fear,” while a higher one hollers “greed.”

From Fear to FOMO: Crypto’s Mood Ring Flashes Near ‘Greed’

Coinmarketcap.com’s Fear and Greed Index.

To crank out this reading, CMC says the firm taps into price momentum, volatility, derivatives action through put and call ratios, overall market composition, and its own proprietary data. CMC’s methodology states:

The index also uses social trend keyword searches and user engagement metrics to capture market sentiment, retail interest, and emerging trends.

Another go-to fear and greed gauge takes a slightly different recipe, mixing in volatility, market momentum, and trading volume, social media chatter, dominance shifts, and trend data. The Crypto Fear and Greed Index (CFGI) over on alternative.me is flashing a hotter signal—71 today, compared with 63 just yesterday.

From Fear to FOMO: Crypto’s Mood Ring Flashes Near ‘Greed’

The CFGI hosted on alternative.me.

That’s a quick jump, considering the gauge was dragging its feet at 33 last week, deep in “fear” territory. In short, what was once skittish hesitation has now flipped to solid “greed” mode for two days running.

The CFGI makes it clear: once investors start getting too greedy, it’s a red flag that a correction is usually lurking around the corner. For now, though, both the CMC FGI and CFGI are staying shy of the “extreme greed” zone.

This suggests we haven’t crossed into full-on frothy mania—at least not yet. So, where does all this leave the crypto crowd? Right on the edge of excitement, but not quite in melt-up or meltdown modes. For now, bitcoin and its digital cousins are enjoying the upper tier of the charts while sentiment keeps the engine humming.

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