The Crypto Fear and Greed Index, a widely followed sentiment gauge for cryptocurrency investors, has registered a score of 61, entering the "Greed" zone for the first time since the massive market liquidation event in October 2025. This marks a significant shift from weeks of prevailing "fear" and "extreme fear" sentiment.
The index had climbed to a "neutral" rating of 48 just a day prior. The current surge in optimism follows a period of extreme pessimism triggered by a $19 billion liquidation event on October 11, 2025, which sent the index plunging to some of its lowest-ever ratings, frequently hitting low double digits throughout November and December.
The sentiment recovery is closely tied to a strong rally in Bitcoin (BTC). Over the past week, Bitcoin's price climbed from $89,799 to a two-month high of $97,704, according to CoinGecko data. The last time BTC traded above $97,000 was on November 14, 2025, a period when the index was in "extreme fear" as prices corrected from all-time highs.
Analysts from Santiment noted that over the three days leading up to Wednesday, Bitcoin saw a net drop of 47,244 non-empty wallets, indicating retail investors were selling due to "FUD & impatience." However, they interpreted this as a "good sign," suggesting the crowd was dropping out. This view was supported by Bitcoin supply on exchanges hitting a 7-month low of 1.18 million BTC, reducing the risk of a large-scale sell-off.
The broader market has rallied alongside Bitcoin. The total cryptocurrency market capitalization has surpassed $3.3 trillion, with Ethereum (ETH) rising over 6% to exceed $3,320. The bullish momentum is further underscored by significant inflows into U.S. spot Bitcoin ETFs, which recorded a single-day inflow of $753.73 million, led by Fidelity's FBTC with a $351 million increase.
The Crypto Fear and Greed Index is calculated by Alternative.me using multiple market indicators, including volatility, trading volume, social media sentiment, and Google search trends.
