Crypto Sentiment Soars to 3-month High
The Crypto Fear & Greed Index increased by 14 points to 46 out of 100, marking its highest reading since Jan. 18 and its largest single-day jump in over three months. Although the index remains in the “Fear” zone, it represents a notable recovery from the record low of 5 recorded on Feb. 23. That drop followed the Trump administration announcing a 15% global tariff, which pushed Bitcoin’s price down to around $63,000.
Despite ongoing institutional adoption on Wall Street and a more crypto-friendly regulatory tone in Washington, sentiment has remained subdued, with the index stuck in the Fear zone since mid-January.
Retail absence and market dynamics
Some analysts, including Matt Hougan, have pointed out that retail investors have not participated at the same levels seen in previous market cycles. This is significant because the Crypto Fear & Greed Index relies heavily on retail-driven indicators, such as social media activity and Google search trends related to crypto.
Bitcoin surged approximately 5.9% over a 20-hour period on Wednesday, reaching nearly $79,400 before pulling back slightly to around $77,920, according to CoinGecko.
Futures-driven rally and supply shift
According to CryptoQuant, the recent Bitcoin rally has been largely fueled by demand in the perpetual futures market. In a post on X, CryptoQuant’s head of research, Julio Moreno, said the move was “completely driven by demand” in this segment. At the same time, spot demand has been gradually declining, raising the possibility of a correction if traders begin taking profits while this trend continues.
In a separate update, CryptoQuant highlighted that more than 300,000 Bitcoin have shifted into long-term holder wallets over the past 30 days, while short-term holders have been selling. “Bitcoin supply is moving into stronger hands,” CryptoQuant said, adding that Strategy alone has accumulated 53,000 Bitcoin in the last month.
Bitcoin’s climb toward $80,000 has taken place against a backdrop of geopolitical uncertainty, particularly tensions involving the United States and Iran over control of the Strait of Hormuz.
Sources:
https://cointelegraph.com/news/crypto-market-sentiment-hits-3-month-high
https://x.com/cryptoquant_com/status/2047075137594294396
https://x.com/jjcmoreno/status/2047072820526497873