Crypto Sentiment Index Hits Three-Month Peak as Bitcoin Remains at $77,000
The crypto fear and greed index improved significantly, indicating a rise in market sentiment as Bitcoin approaches $80,000.
The crypto market sentiment index surged to its highest point in over three months as of Wednesday, following a nearly 6% increase in Bitcoin, bringing its price close to $80,000.
The Alternative.me Crypto Fear & Greed Index rose by 14 points to 46 out of 100, marking its peak since January 18 and representing the most significant one-day increase in over three months.
Crypto Market Sentiment
A fluctuation in the Crypto Fear & Greed Index score over time. Source: Alternative.me
Although still categorized in the “Fear” range, the current index shows a notable recovery from its lowest ever score of 5 registered on February 23 when Bitcoin plummeted to approximately $63,000 due to global tariffs imposed by the Trump administration.
For a while now, the sentiment index has remained in the Fear territory since January 18, amidst ongoing institutional crypto adoption on Wall Street and a regulatory environment that favors cryptocurrencies. Nonetheless, Matt Hougan, Chief Investment Officer of Bitwise, and others have highlighted that retail trader engagement has not matched previous cycles.
The Crypto Fear & Greed Index takes into account various factors, including social media activity and Google search trends relating to crypto, which are primarily driven by retail interests.
Bitcoin experienced a five-point increase to nearly $79,400 within a 20-hour span on Wednesday but later settled at $77,920, as per CoinGecko data.
Perpetual Market Fuels Bitcoin Surge: CryptoQuant
In a statement on X, Julio Moreno, head of research at CryptoQuant, noted that the Bitcoin increase was ‘completely driven by demand’ coming from the perpetual futures market.
Moreno cautioned that spot market demand has shown signs of decline, warning that a correction may occur if traders begin cashing out profits as this trend continues.
In another update on X, CryptoQuant reported that over 300,000 Bitcoin have shifted into long-term holders’ wallets in the past month, while short-term holders have been selling off.
“Supply is increasingly being consolidated among stronger holders,” CryptoQuant remarked, revealing that a single strategy accounted for 53,000 Bitcoin over the previous month.
With Bitcoin reforming its ascent towards $80,000, global uncertainty, particularly over the US-Iran situation regarding the Strait of Hormuz, continues to pose challenges.
