The Bitcoin Fear and Greed Index is calculated by taking a number of different factors into account. These include the price of Bitcoin, the volume of Bitcoin traded, the volatility of Bitcoin, and the number of Google searches for the term “Bitcoin.”
The index is designed to give investors an idea of how much “fear” or “greed” is currently driving the market for Bitcoin. A reading of 0 indicates that the market is in a state of “extreme fear,” while a reading of 100 indicates that the market is in a state of “extreme greed.”
Currently, the Bitcoin Fear and Greed Index is sitting at 61, which indicates that there is more “greed” than “fear” driving the market at the moment. This is generally seen as a good thing, as it suggests that investors are confident in the future of Bitcoin.