What is a crypto sentiment score?

A crypto sentiment score sums up the market's mood from 0 (extreme fear) to 100 (extreme greed). Here's what it measures, how to read it, and its limits.

A crypto sentiment score turns the market's mood into one number, usually from 0 to 100. Low numbers mean fear: people are selling, nervous or sitting out. High numbers mean greed: people are buying, confident and taking more risk. Around 50 is neutral.

What goes into it

Different services build their scores differently, but most blend a few signals:

• Price action: how far and how fast prices have moved recently
• Volatility: big, sudden swings usually mean nervous markets
• Positioning: whether traders are mostly betting on prices going up or down (see longs and shorts)
• Money flows: for example, money moving into or out of Bitcoin ETFs
• News and social mood: what's being said, and how loudly

How to read it

Think of the score as a weather report, not a forecast. "40, Cautious" tells you the market is a bit nervous today. It doesn't tell you what prices will do next.

Two patterns are worth knowing:

• Extremes don't last forever. Very high greed often comes after a big run-up, and very deep fear often comes after a sharp fall. Moods tend to swing back towards the middle over time.
• Sudden changes matter more than the level. A jump from 70 to 45 in two days tells you something changed quickly, and it's worth finding out what.

What it can't do

A sentiment score is a summary, so it hides detail. It can't tell you why people feel the way they do, and it isn't a signal to buy or sell. Use it as a starting point, then read what's behind it.

How SteelWater uses it

Every morning at 8am Singapore time we publish a score from 0 to 100 with a one-word label, such as Cautious or Optimistic, then explain in plain English what moved it. You can see today's reading at the top of this page.

General market information for education only, not financial advice. Crypto-assets are highly volatile; never risk money you can’t afford to lose.