Does The Bitcoin Fear & Greed Index ACTUALLY Work?

The #Bitcoin Fear & Greed Index chart provides insights into the current bullish or bearish sentiment amongst investors.

But does the indicator actually give us anything actionable, or should we shift our attention to other #BTC metrics?

We discuss all this and more here!

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Disclaimer:
Nothing within this video should be misconstrued as financial advice. The information provided is for educational purposes only. You are responsible for your own investment decisions.

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[dangercat]

Thanks Matt, great analysis. I've only just caught up on you last vid on combined BTC metrics. My favourite 2 metrics that I put most weight on are RSI and "Value Days Destroyed (VDD) Multiple". Be great if you could consider including these these 🙂

[StarOnTheWater]

I'm not sure I quite understand the setup of the experiment.
Did you invest with 1% or the original sum or 1% of the sun that was left in cash?
Did you sell 1% or your current holdings each time or 1% of your maximum holdings?

[kennethknowlton]

Hodling Bitcoin, for four years or more, is subject only to capital gains tax. BTC would also compound until you eventually sell it. By contrast, frequently trading BTC, by the fear and greed index, or anything else, is subject to income tax every year. If you are taking out BTC, to cover taxes every year, BTC gains do not compound to the extent that they would hodling for a multiyear period. Not everyone pays taxes, but those trading on a U.S. certified exchange, will have their profits reported to the I.R.S.

At any rate, a comparison that includes the differences that taxes would make should be considered.