Crypto Fear and Greed Index hit \u201cgreed\u201d for the first time since the $19B October liquidation event.
\nBitcoin rallied to a two-month high above $97K, helping lift overall crypto market sentiment.
\nOn-chain data shows retail holders exiting, while declining exchange balances signal reduced sell pressure.<\/p>\n
The Crypto Fear and Greed Index has moved back into \u201cgreed\u201d territory for the first time since a $19 billion liquidation event in October rattled digital asset markets, signaling an improvement in investor sentiment as Bitcoin staged a strong recovery.<\/p>\n
In an update on Thursday, the index posted a reading of 61, reflecting growing optimism after weeks spent in \u201cfear\u201d and \u201cextreme fear.\u201d<\/p>\n
Just a day earlier, the index stood at 48, placing it in the \u201cneutral\u201d zone.<\/p>\n
The shift marks a notable change in mood following months of heightened risk aversion among crypto traders.<\/p>\n
Crypto investor sentiment collapsed on Oct. 11, when $19 billion was liquidated from the market, sending traders fleeing from altcoins and driving widespread pessimism.<\/p>\n
In the weeks that followed, the Crypto Fear and Greed Index recorded some of its lowest readings on record, falling into the low double digits multiple times in November and December.<\/p>\n
The index is closely watched by market participants as a barometer of sentiment, helping traders assess whether conditions favor buying, selling, or remaining on the sidelines.<\/p>\n
It compiles data from several indicators, including price volatility of major cryptocurrencies, trading volume, market momentum, Google search trends, and overall sentiment on social media platforms.<\/p>\n
The return to \u201cgreed\u201d suggests that the sharp caution seen late last year has begun to ease, even though markets remain well below the levels that previously triggered euphoric sentiment.<\/p>\n
Improving sentiment has coincided with a strong rebound in Bitcoin prices.<\/p>\n
Over the past seven days, Bitcoin has climbed from $89,799 to reach a two-month high of $97,704 on Wednesday, according to data from CoinGecko.<\/p>\n
The move marks the first time Bitcoin has traded above $97,000 since Nov. 14.<\/p>\n
At the time of writing, Bitcoin was trading at $96,218, up by 1% in the last 24 hours.<\/p>\n
At that time, however, the Fear and Greed Index was firmly in \u201cextreme fear\u201d territory, as Bitcoin was sliding sharply from all-time highs.<\/p>\n
The latest rally has helped stabilize broader market confidence, even as traders remain cautious about sustainability.<\/p>\n
While the index\u2019s return to \u201cgreed\u201d indicates growing optimism, it remains well below levels typically associated with excessive risk-taking.<\/p>\n
Despite the improving price action, some on-chain indicators suggest that retail participation has declined in recent days. Analysts at market intelligence platform Santiment said in an X post on Wednesday that Bitcoin holders have been reducing their exposure.<\/p>\n
According to Santiment, over the last three days, there has been a net drop of 47,244 Bitcoin holders, indicating that \u201cretail had been dropping out due to FUD & impatience.\u201d<\/p>\n
\u201cWhen non-empty wallets drop, it\u2019s a sign that the crowd is dropping out, a good sign. Similarly, less supply on exchanges decreases the risk of a selloff,\u201d the analysts said.<\/p>\n
They added that \u201cThis price bounce has also been supported by a 7-month low 1.18 million Bitcoin on exchanges.\u201d<\/p>\n
A lower amount of Bitcoin held on exchanges is generally viewed as a bullish indicator, as it suggests investors are storing assets in private wallets and are less inclined to sell quickly.<\/p>\n
Taken together, the rebound in sentiment, rising Bitcoin prices, and declining exchange balances point to a cautiously improving outlook for the crypto market, even as investors continue to weigh lingering risks.<\/p>\n
The post Crypto Fear and Greed index returns to greed as Bitcoin rallies above $97K<\/a> appeared first on CoinJournal<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Crypto Fear and Greed Index hit \u201cgreed\u201d for the first time since the $19B October liquidation event. Bitcoin rallied to a two-month high above $97K, helping lift overall crypto market sentiment. On-chain data shows retail holders exiting, while declining exchange balances signal reduced sell pressure. The Crypto Fear and Greed Index has moved back into […]<\/p>\n","protected":false},"author":0,"featured_media":6085,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-6084","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin"},"acf":[],"_links":{"self":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/6084","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/comments?post=6084"}],"version-history":[{"count":0,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/6084\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media\/6085"}],"wp:attachment":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media?parent=6084"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/categories?post=6084"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/tags?post=6084"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}