Trading & Technical Analysis

What is market sentiment and how do indicators measure it?

Market sentiment is the overall mood of participants toward an asset, ranging from fear to greed, and it can drive prices independently of fundamentals. Indicators try to quantify it: the Crypto Fear and Greed Index aggregates volatility, volume, and social signals into a single score, while funding rates and the put-call ratio reveal positioning. Extreme readings often precede reversals, since crowded sentiment tends to exhaust itself. Sentiment is a signal, not a forecast, and acting on it carries real risk. A rules-based allocation approach is designed to reduce reliance on mood swings.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.