How A Bitcoin Fear and Greed Index Trading Strategy Beats Buy and Hold Investing

The Bitcoin Fear and Greed Index is a sentiment analysis tool that captures the collective mood of Bitcoin traders and investors. Spanning a scale of 0 to 100, the index identifies market emotions ranging from extreme fear (0) to extreme greed (100). While it’s a popular resource among many analysts, it certainly has some doubters! So, let’s look at the data to quantifiably prove if this index can actually help you make better investment decisions.

Investor Emotion

The Fear and Greed Index aggregates various metrics to provide a snapshot of market sentiment. These metrics include:

Price Volatility: Large price swings often evoke fear, especially during downturns.

Momentum and Volume:…

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