I noticed that Bitcoin rebounded strongly above $70,000 after approaching $60,000 in early the month. The move came after US inflation figures came in lower than expectations, 2.4% instead of the expected 2.5%. The market interpreted this as a sign that interest rate cuts could come sooner, so stocks and cryptocurrencies both surged.

In the past 24 hours, Bitcoin rose about 5% from $70,000, and the broader CoinDesk 20 index increased by 6.2%. Traders on prediction platforms increased the probability of a rate cut in April from 19% to 26% on Kalshi.

But the truth is, beneath the surface, the situation is a bit concerning. The Fear and Greed Index remains in the "Extreme Fear" zone, last seen in 2022 when FTX collapsed. Bitwise analysts said that $8.7 billion in losses were realized in Bitcoin last week, the second-largest loss after the 3AC collapse.

The positive side is that the treasury companies holding Bitcoin saw their unrealized losses decrease from $21 billion to $16.9 billion with the recovery. Analysts said that transferring assets from weak hands to committed investors usually precedes market stabilization, but this takes time.

In summary, the rise is real, but the prevailing fear in the market still keeps you cautious. Every increase could be a selling opportunity for some, and the big question is whether this fear will persist or if the market is truly starting to turn.