Crypto Fear and Greed Index Moves Out of ‘Extreme Fear’ Zone! Here Are the Details

The recovery trend seen in the cryptocurrency market in the middle of the week was noteworthy. Leading digital assets, especially Bitcoin, rose due to strong inflows into exchange-traded funds (ETFs) and a decrease in geopolitical tensions.

According to the data, Bitcoin rose approximately 2.2% in the last 24 hours, climbing above the $78,000 level and trading at $78,015. Ethereum, meanwhile, increased by 2.7% during the same period, reaching $2,386. The overall cryptocurrency market saw an increase of approximately 2.3%.

Analysts attribute this rise to a combination of factors. Zeus Research analyst Dominick John stated that reduced geopolitical risks, strong capital inflows into ETFs, and market positioning supported prices. He noted that the liquidation of short positions as Bitcoin surpassed the $75,000 level created a “short squeeze” effect that drove prices higher.

The net inflow of approximately $1.8 billion into spot Bitcoin ETFs over the past three weeks was also a significant factor supporting the rise. Furthermore, the increase in institutional demand through new Bitcoin purchases by Strategy, led by Michael Saylor, was noteworthy.

On the other hand, US President Donald Trump’s decision to extend the ceasefire with Iran somewhat reduced uncertainty in the markets, boosting risk appetite. As a result of these developments, the Crypto Fear and Greed Index rose to 33, moving out of the “extreme fear” zone.

Nevertheless, experts emphasize that for the current rise to turn into a sustained bull market, Bitcoin needs to hold in the $78,000–$83,000 range and see stronger liquidity and increased demand across the market.

*This is not investment advice.