The cryptocurrency market is showing early signs of renewed confidence as the Crypto Fear & Greed Index moves into “greed” territory for the first time since October. The shift highlights a notable change in trader psychology after months dominated by caution and risk aversion.
The index recently climbed to a score of 61, marking a clear break from the prolonged period of fear and extreme fear that followed the $19 billion market liquidation in October. Just one day earlier, the index stood at 48, placing sentiment firmly in neutral territory before turning positive.
Improving sentiment has closely followed Bitcoin’s recent price rebound. Over the past week, Bitcoin surged from around $89,800 to nearly $97,700, reaching a two-month high. This recovery has helped stabilize broader market expectations after weeks of uncertainty.
Santiment said in an X post on Wednesday;
Recent data shows a decline of over 47,000 Bitcoin holders, suggesting that short-term and impatient investors are exiting the market. Analysts often view this as constructive, as it reduces emotional trading pressure. At the same time, Bitcoin balances on exchanges have dropped to a seven-month low, indicating fewer coins are immediately available for selling.
The Crypto Fear & Greed Index aggregates price momentum, trading volumes, volatility, search trends, and social sentiment, making it a widely watched indicator. While “greed” does not guarantee continued gains, it reflects growing optimism and improving market structure, which traders often monitor closely when assessing potential buying or selling opportunities.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.