The cryptocurrency market sentiment index rises to a 3-month high but remains in the "Fear" zone

BlockBeats News, April 23, according to Alternative.me data, the Crypto Fear and Greed Index rose by 14 points in a single day, reaching 46 points, the highest level in more than three months since January 18. The index previously hit a historic low of 5 points on February 23 when the Trump administration’s tariff hikes caused Bitcoin to fall to about $63,000.

This rebound was mainly driven by Bitcoin’s rise. Within about 20 hours, Bitcoin rose 5.9% to nearly $79.4k, before falling back to around $77.9k. CryptoQuant’s research director noted that this rally was entirely driven by demand from the perpetual futures market, but spot demand is contracting. If traders start taking profits, the market may see a pullback.

Although the index has rebounded, it is still in the “fear” range. Since January 18, the index has not been able to get out of this range. Analysts said that retail traders’ participation is lower than in previous market cycles, and related sentiment indicators mainly rely on retail-driven data such as social media and search volume.