The Crypto Fear & Greed Index surged to 61 on Thursday, marking its first foray into "greed" since October last year. Just a day earlier, the widely followed sentiment gauge sat at 48 — a neutral level. The rapid flip underscores how quickly market mood has rebounded after months of extreme caution.
The $19 Billion Liquidation That Started It All
On Oct. 11, roughly $19 billion in crypto positions were liquidated in a single day, hammering altcoins and triggering a prolonged risk-off environment. In the weeks that followed, the Fear & Greed Index repeatedly dipped into low double digits through November and December, signaling deep trader wariness.
Bitcoin Leads the Recovery, Touching $97,704
The recent improvement has tracked Bitcoin’s price action. Over the past seven days, BTC climbed from about $89,800 to hit a two-month high of $97,704 on Wednesday, according to CoinGecko. That rally stabilized broader market confidence and pulled the sentiment index back into positive territory.
Sentiment indicators are typically used as context rather than actionable signals. Historically, extreme fear has coincided with market bottoms, while sustained greed tends to appear near tops. At 61, the index suggests improving risk appetite without the exuberance typically seen at cyclical peaks.
For now, the shift highlights how quickly mood has turned as Bitcoin reclaims levels last seen before the October washout. Whether the rally holds — and whether sentiment can sustain — remains the key question traders are watching.