How does the Fear & Greed Index affect BTC price?

The copyright Fear & Greed Index is a popular tool that measures the emotional state of the copyright market. It combines factors like volatility, volume, social media sentiment, and dominance to score the market on a scale from 0 (extreme fear) to 100 (extreme greed). This sentiment index doesn’t directly set the btc price, but it offers valuable insight into what traders might do next. When the index shows extreme fear, it often signals a buying opportunity, as prices may be lower than actual value. On the flip side, extreme greed can indicate overbought conditions, making a correction likely. Many traders use this tool alongside technical indicators and price charts to make smarter moves. While emotion alone shouldn't guide your investment strategy, understanding market psychology is key. You can pair sentiment tools like this with real-time btc price tracking on Toobit for a well-rounded view.