The Alternative.me Crypto Fear & Greed Index has surged to 46 out of 100, the highest level observed since January 18, marking a significant increase of 14 points. This rise follows a nearly 6% rally in Bitcoin, which peaked at approximately $79,400 on Wednesday before settling around $77,920. The index reflects a notable recovery from its all-time low of 5, recorded on February 23.
Despite this rebound, the index remains within the “Fear” territory, having been trapped there since mid-January. Influenced by metrics like social media activity and Google searches, the index primarily captures retail sentiment, which has not fully materialized in the current market cycle. Institutional adoption continues to grow, yet retail participation is lagging.
Additionally, more than 300,000 Bitcoin have shifted into long-term wallets over the past month, indicating a trend of accumulation among stronger holders. However, experts warn of potential market corrections as spot demand appears to be contracting despite the ongoing rally driven by perpetual futures trading.