According to the source, the Crypto Fear and Greed Index reads 71 today, signaling Greed and up from 50 Neutral seven days ago, indicating a sharp bullish sentiment shift, source: Alternative.me. The index aggregates volatility, market momentum and volume, social media activity, Bitcoin BTC dominance, and Google Trends into a 0 to 100 score where higher values reflect greed, source: Alternative.me. Alternative.me cautions that when investors are getting too greedy the market may be due for a correction, while extreme fear can present buying opportunities, source: Alternative.me. For trading, a Greed reading above 70 flags sentiment overheating, so traders often tighten risk on momentum longs and watch BTC pairs for potential pullback volatility, source: Alternative.me.

According to the source, the Crypto Fear and Greed Index is at a neutral reading ahead of the FOMC decision, indicating balanced risk appetite by design; source: the source; Alternative.me. Option markets typically see implied volatility build into Fed decisions and expand on the announcement, making short-dated BTC and ETH straddles a common event-driven strategy; source: Deribit Insights. Rate guidance that moves US Treasury yields and the US Dollar Index DXY often steers BTC’s direction via macro correlation, so monitor the FOMC statement, dot plot, and press conference for cues; source: Federal Reserve; Kaiko. To manage risk, traders commonly reduce leverage pre-event and map liquidation clusters and open interest levels to prepare for post-FOMC breakouts on BTC and ETH perpetuals; source: Glassnode; Binance Research.

According to AltcoinGordon on Twitter, the Crypto Fear & Greed Index is currently bouncing, indicating heightened market volatility and rapid shifts in trader sentiment. This movement often signals potential short-term trading opportunities for Bitcoin and major altcoins, as periods of oscillating sentiment can precede price breakouts or corrections. Traders monitoring sentiment-driven indicators like the Fear & Greed Index may consider adjusting risk management strategies in anticipation of increased price swings (source: AltcoinGordon on Twitter, May 4, 2025).

According to Miles Deutscher, the Crypto Fear and Greed Index has reached its lowest level since the 2022 bear market. Such extreme deviations are historically associated with major capitulation moments, which often signal the formation of a local bottom, potentially providing a buying opportunity for traders.

According to Miles Deutscher, the Crypto Fear and Greed Index has hit its lowest reading since last October's lows, indicating increased market nervousness which could signal the formation of a market bottom.

According to The Kobeissi Letter, the Crypto Fear and Greed Index has dropped from greed levels to fear, currently reading at 29%. Historically, such sentiment shifts are associated with 'flash crash' type movements in the market, suggesting potential upcoming volatility. (Source: The Kobeissi Letter)

According to The Kobeissi Letter, the crypto Fear and Greed Index has dropped to a fear level of 29% from previous greed levels. Such swings in investor sentiment are often followed by 'flash crash' type movements in the market, indicating potential short-term trading volatility.

According to Miles Deutscher, the Crypto Fear and Greed Index has fallen to 35, the lowest level recorded since September 2024. This indicates a significant increase in market fear, which could lead to potential selling pressure as investors might react to the bearish sentiment. Traders should monitor the market closely as low confidence levels can result in heightened volatility, creating both risks and opportunities for strategic trades.