#Gate Square Creator New Year Incentives｜Market Sentiment Turns to “Greedy” for the First Time in Three Months, Is It the End of the Rebound or the Restart of the Bull Market?

The “sentiment thermometer” of the crypto market has experienced a key shift. The Fear and Greed Index rose to 61 on Thursday, marking the first time since October last year that it has returned to the “Greedy” zone. Market sentiment seems to have warmed up overnight from a freezing point, but does this mean genuine safety?

Sentiment Review: From Extreme Fear to Rapid Greed

The low point of sentiment began on October 11 last year, when the market experienced nearly $19 billion in massive liquidations, with altcoins bleeding heavily, and investors quickly falling into “Extreme Fear.” Over the following two months, the index lingered in single digits or low levels for a long time, dominated by risk-averse sentiment.

The turning point in sentiment is highly synchronized with Bitcoin’s strong rebound. Over the past week, Bitcoin’s price climbed from about $89,800 to around $97,700, hitting a two-month high. This rally significantly restored market confidence and drove the sentiment index to jump rapidly.

How to Understand the Current “Greedy” State?

The index itself is a lagging reflection of market sentiment, not a direct forward-looking indicator. Historical experience shows:

· When the index is in “Extreme Fear” (usually below 20), it often corresponds to a market bottom.
· When the index remains in “Extreme Greed” (usually above 80), it may indicate market overheating and top risk.

The current reading of 61 indicates that market risk appetite has been clearly restored, but it has not yet entered the frenzy bubble zone. It is more like a transitional signal from recovery to active trading.

Key Question: Is This a New Starting Point or the End of the Rebound?

The sentiment warming is a fact, but it often comes faster than solid technical structures and fundamental improvements. The core issues facing the market now are:

· Macro level: Has the Federal Reserve’s interest rate policy truly shifted? Can liquidity expectations be sustained?
· Technical level: Can Bitcoin hold key levels (such as the $95,000–$96,000 support zone)? Or will it face resistance near previous highs again?
· Structural level: Is the rally driven by healthy demand, or mainly by short covering and emotional factors?

Conclusion:
The rapid shift in sentiment reminds us that the market has emerged from “despair,” but “greed” itself does not guarantee the continuation of the trend. It may be an early emotional preparation for a new cycle or merely the emotional peak at the end of a technical rebound.

For investors, it might be better to focus on:

1. Whether prices can form a solid structure at key support levels.
2. Whether the rally is accompanied by healthy volume growth and capital inflows.
3. Whether there is sector rotation or new narrative logic emerging.

Maintaining calm during sentiment recovery and being decisive once the trend is confirmed may be the best strategy right now.

Do you think this “greedy” phase is the starting gun for a bull market, or the end of the rebound?#BTC冲击96,000美元