The Crypto Fear and Greed Index

In 1993, the Chicago Board Options Exchange (Cobe) launched Cboe Volatility Index, which “initially was designed to measure the market’s expectation of 30-day volatility implied by at-the-money S&P 100® Index (OEX® Index) option prices.” In real time, the volatility index (VIX) measures the US stock market’s S&P 500 expectation of volatility over the upcoming 30 days. If the VIX is high, then the market sentiment is uncertain as to whether stock prices will rise or fall dramatically and if the VIX is low investors believe that there are unlikely to be any significant price movements up or down in the short term. Created by CNN Business in 2012, the Fear and Greed Index is a tool to gauge how emotions influence investors. CNN describes the Fear and Greed Index as “ a compilation of seven different indicators that measure some aspect of stock market behaviour. They are market momentum, stock price strength, stock price breadth, put and call options, junk bond demand, market volatility, …