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The Crypto Whale Sentiment Index is an analytical tool designed to measure the sentiment of crypto whales. It utilizes the same scale and categories as the general Crypto Fear & Greed Index: a scale from 0 (extreme fear) to 100 (extreme greed), divided into five color-coded segments.
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However, the data collection, analysis, and aggregation methods differ significantly from the standard FGI. The Crypto Whale Sentiment Index is based entirely on distinct data derived exclusively from the behavior of crypto whales. The final score is calculated using an algorithm specifically tailored to analyze the behavior of these large market participants.
The behavior of crypto whales can differ significantly from that of regular market participants and may even be counter-cyclical, often moving in opposition to the signals indicated by the general Crypto Fear & Greed Index. For a comprehensive understanding of the current crypto market sentiment, it is essential to analyze the behavior of crypto whales separately from the broader market, using distinct data and a specialized algorithm tailored for this purpose.
Through the development of the Whale Sentiment Index (WSI), _crymet has created a proprietary system designed to analyze and consolidate the behavior of the largest market players into a single index.
We offer both an aggregated market-wide Crypto Whales Index as well as individual indices for the top 10 cryptocurrencies, providing a detailed, currency-specific analysis for each.
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What is the Crypto Whale Sentiment Index?
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The Whale Sentiment Index is a metric ranging from 0 to 100, representing the sentiment among the largest market participants in the cryptocurrency space. Within this range, five sentiment categories are defined: Extreme Greed, Greed, Neutral, Fear, and Extreme Fear.​​​​
Colors & Values
EXTREME FEAR
0-25
FEAR
25-45
NEUTRAL
45-55
GREED
55-75
EXTREME GREED
75-100
The sentiment of crypto whales must be viewed separately from that of the retail market. Whales tend to be better informed or, in some cases, directly involved in projects, and their sentiment and actions can significantly influence the broader market. In contrast, the actions of retail participants generally have less impact on crypto whales. Whales are less sensitive to minor market fluctuations, often take advantage of lower prices to accumulate assets, and tend to trade less frequently than retail participants. As a result, crypto whales exhibit distinct patterns in their sentiment.
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The _crymet Whale Sentiment Index (WSI) aggregates data from various currencies, assigning more weight to those with higher dominance. Additionally, individual indices are available for the top 10 cryptocurrencies, offering detailed sentiment analysis for each.
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Construction of the _crymet Crypto Whale Sentiment Index
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The _crymet Crypto Whale Sentiment Index is a multifactor index created by aggregating a wide range of indicators. It is more technically indicator-based than the standard Fear & Greed Index, as the sentiment of whales is primarily deciphered through the technical analysis of their behavior.
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A key factor in calculating this index is the classification of addresses to focus solely on whale movements. On one side, addresses must be categorized by volume, with whales generally defined as those holding over 1% or 0.1% of a crypto asset’s circulating supply. On the other side, addresses associated with exchanges used for transactions must be filtered out, as they do not meet the criteria for whale behavior.
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Subsequently, the on-chain analysis and monitoring of transactions between wallets and exchanges provide insights into whale behavior. Notably, net flows between wallets and exchanges, as well as transactions to and from stablecoins, are particularly relevant.
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Interpreting the _crymet Crypto Whale Sentiment Index
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Even among large investors and crypto holders (so-called crypto whales), sentiment fluctuates due to various factors can offer valuable insights into ongoing or emerging market trends. The Crypto Whale Sentiment Index primarily indicates the direction in which whales’ large positions are moving. Spikes or extreme values in the index are often strong indicators of ongoing or imminent market shifts. In such cases, the index can reveal whether whales are accumulating assets or, conversely, intending to reduce or liquidate their positions.
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Compared to the general Crypto Fear & Greed Index, the Whale Sentiment Index should be interpreted as less volatile. Thus, extreme values in the WSI should be viewed as stronger signals, typically resulting from significant market upheavals.​
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While the Crypto Whale Sentiment Index offers useful insights into market trends, it should not be solely relied upon to predict future prices of Bitcoin or other cryptocurrencies. Instead, it serves as a supplementary tool for traders to enhance their decision-making processes.
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Nothing in this article constitutes professional or financial advice, and no information in this article represents a comprehensive or complete statement of the matters discussed. All content in this article does not pertain to the specific circumstances of any individual or organization and is of a general nature.
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