What is the fear and greed index?
This indicator, which appears on Paribu under the name Anxiety & confidence index — also known internationally as the fear and greed index (Fear & Greed Index) — expresses the overall sentiment of the crypto market on a scale from 0 to 100. Low values indicate that investors are cautious (anxious) about the market, while high values indicate that confidence is high. You can view the index in the Markets > Crypto tab in the Paribu app.
What is the anxiety & confidence index?
The anxiety & confidence index is an indicator that measures the sentiment of the crypto market by combining data such as price movements, trading volume, market momentum, social media interest, and volatility. The index takes a value between 0 and 100; values close to 0 represent extreme anxiety, and values close to 100 represent extreme confidence.
The index provides a real-time summary of community behaviour in the market. When investors are concerned that prices will fall, the index drops; when confidence in price increases is high, it rises.
Where can I see the index?
You can access the anxiety & confidence index in the Paribu app with the following steps:
- Tap the Markets tab in the bottom navigation
- Select the Crypto tab at the top
- View the current value on the Anxiety & confidence index card
By tapping the info icon on the card, you can open a brief explanation of how the index works.
How are index values interpreted?
The index value expresses a different market sentiment depending on the range it falls into:
- 0 – 24 · Extreme anxiety: The market is under significant selling pressure. Investor risk appetite is low.
- 25 – 49 · Anxiety: The market has shifted into a cautious state. Price movements may slow down.
- 50 · Neutral: The market appears balanced; there is no clear advantage between buyers and sellers.
- 51 – 74 · Confidence: Investors are optimistic. Buying interest increases.
- 75 – 100 · Extreme confidence: The market is in an exuberant state. Sharp rallies may be seen; at the same time, the risk of correction increases.
Note: The index being low or high alone is not a buy or sell signal. The index is a supplementary indicator that helps you understand market sentiment.
How is the index used?
The anxiety & confidence index can be used as a starting point for investors who want to quickly assess market conditions:
- In the extreme anxiety zone, the market may be in panic. Some investors view this zone as a long-term assessment opportunity.
- In the extreme confidence zone, the market may be overheated. This carries the risk of profit-taking and volatility.
- In the neutral zone, the market has not set a major direction; for short-term decisions, it is recommended to evaluate the index together with other indicators.
It is healthier to evaluate the index value not as a standalone decision tool, but together with other data such as price charts, news, and statistics.
Warning: The anxiety & confidence index is an informational indicator and does not constitute investment advice. You should make your investment decisions based on your own research and risk profile.
Frequently asked questions
What data is the index calculated from?
The index is calculated using data compiled from different sources such as price movement, trading volume, market momentum, volatility, social media interest, and market dominance. Each source contributes to the index with a different weight.
How often is the index updated?
The anxiety & confidence index is generally updated daily. The value displayed in the Paribu app reflects the current calculation.
Why does the index change suddenly?
Factors such as major price movements, important news, or heavy trading volume can cause the index to change rapidly. Short-term fluctuations in the index directly reflect changes in market sentiment.
Can I use the index to trade?
The index does not provide a buy or sell signal on its own. In investment decisions, it is recommended to evaluate the index together with other indicators and your personal risk profile.
Related articles
- How to use the Markets screen — Using the Markets screen
- How can I view asset details? — Viewing asset details
- News feed and market news — News feed and market news
- How to set up and manage price alerts — Setting and managing price alerts
- What is profit/loss (P&L) and how is it calculated? — Calculating profit/loss (P&L)
Author:
Paribu