Market sentiment has shifted dramatically over the past three months: investors have moved from fear to greed

The cryptocurrency market is experiencing a dramatic shift in sentiment. After a prolonged three months of conservatism and hesitation, investors’ mindset has finally shown a clear turnaround, gradually shifting from “extreme fear” to “greed.” This is the first time since October last year that such a prominent bullish sentiment has returned to the market.

Sentiment Indicator Rapidly Reverses, Fear and Greed Index Hits Recent Highs

According to data from the market sentiment tracking platform Alternative.me, the Fear and Greed Index recently rose to “61 points (out of 100),” officially entering the “greed” zone. This change happened swiftly — just the day before, the index was still at a neutral level of “48 points”; and several weeks earlier, market sentiment had long hovered in the “fear” or even “extreme fear” range, reflecting investors’ cautious and apprehensive attitude at the time.

This sentiment reversal indicates a significant increase in market risk appetite. Investors are no longer solely focused on “surviving” the bear market but are beginning to reconsider opportunities for positioning and accumulation.

October Liquidation Event Wounded the Market, Investors Long-Term Cautious and Watching

To understand the current sentiment’s rarity, we must look back to the start of this downturn. The “liquidation storm” on October 11 last year severely damaged market confidence — with derivatives positions worth up to $19 billion being liquidated in a single day. Many leveraged investors were forced out, and the market for altcoins collapsed collectively, triggering a chain reaction among investors. In the following November and December, the Fear and Greed Index repeatedly dipped into single digits, and the market seemed to fall into a collective deadlock.

Long-term pessimism caused investors to withdraw from risk assets and enter “hedging” mode. This change in mindset takes time to heal.

Bitcoin Recently Strongly Rallying, Market Confidence Gradually Restoring

The shift in market sentiment has almost perfectly synchronized with Bitcoin’s recent performance. Over the past seven days, Bitcoin has undergone multiple breakthroughs — starting from around $89,800 and rising to recent highs of $97,704, hitting a two-month high and successfully stabilizing market morale. This strong technical performance provides tangible support for investors to regain confidence.

Price rallies are often accompanied by improved sentiment, which in turn drives more capital into the market — forming a positive feedback loop.

Sentiment Indicator Risk Warning: When to Stay Alert

It is important to note that the Fear and Greed Index is only a reference for market sentiment, not a trading signal. Historically, “extreme fear” often appears near market bottoms, while prolonged “extreme greed” usually coincides with market highs.

Currently, the index remains at “61 points,” indicating a clear increase in risk appetite, but still well below the “overheated” levels (above 80 points) often seen at market peaks. In other words, the market’s sentiment is just beginning to heat up, and investors should remain vigilant to determine whether this greed phase can sustain long-term stability.

Future Focus: Can Bitcoin Break Through the $100,000 Level

As Bitcoin successfully recovers the key price level before the October correction, traders worldwide are watching closely — whether this bullish sentiment can push Bitcoin back to and hold above the $100,000 psychological threshold will be a crucial indicator of whether the market can continue its upward trend. For investor sentiment to further heat up, more technical breakthroughs and fundamental support are needed.