:#Gate广场创作者新春激励 The crypto market re-enters the "Greed" zone after three months
After nearly three months of panic and liquidation, the sentiment indicator in the crypto market has finally shifted. The market has almost jumped directly from fear to greed. Is the market truly safe now?
The Crypto Fear and Greed Index has returned to the "Greed" zone for the first time since October📈, with the index rising to 61, ending a prolonged state of "Fear / Extreme Fear."
Bitcoin rebounded to a two-month high, significantly boosting market confidence, but traders remain cautious as market sentiment shows clear signs of warming.
Crypto investor sentiment has flipped to "Greed" for the first time since October last year, marking a noticeable increase in risk appetite after a fierce round of liquidation. Data shows that the Crypto Fear and Greed Index rose to 61 on Thursday. Just the day before, the index was still at 48 (Neutral), and in the previous two days and weeks, the market had long hovered in the "Fear" or even "Extreme Fear" zones.
Why did the sentiment collapse?
The weakening of sentiment began on October 11. On that day, the crypto market experienced a staggering liquidation event—about $19 billion in positions were forcibly closed in a single day, altcoins suffered heavy losses, and the market quickly shifted to risk aversion. In the following November and December, the sentiment index repeatedly fell into single digits or low double digits, reflecting traders' heightened caution towards risk assets.
The recent improvement in sentiment is highly synchronized with Bitcoin's price rebound. Over the past seven days, Bitcoin's price rose from about $89,800 to $97,704 on Wednesday, hitting a two-month high (Data source: CoinGecko). This trend effectively stabilized overall market confidence and also gradually restored risk appetite.
It is important to emphasize that sentiment indicators are more used for "understanding market conditions" rather than direct trading signals:
🧊Extreme Fear often appears near cyclical lows
🔥Persistent high greed usually approaches cycle tops
The current reading of 61 indicates that risk appetite is improving but has not yet reached the frenzy level typical of bubbles.
Conclusion: Sentiment recovery is rapid, but structure still needs validation
In just a few weeks, market sentiment shifted from panic to greed, highlighting the volatility of the crypto market. After Bitcoin reclaims key price levels, investors are reassessing risks, but whether prices can stabilize remains to be seen.
Greed is not necessarily a bad thing, but it often arrives earlier than structural confirmation. Do you think the current "Greed" marks the start of a new trend, or is it just sentiment recovery at the end of a rebound?
After nearly three months of panic and liquidation, the sentiment indicator in the crypto market has finally shifted. The market has almost jumped directly from fear to greed. Is the market truly safe now?
The Crypto Fear and Greed Index has returned to the "Greed" zone for the first time since October📈, with the index rising to 61, ending a prolonged state of "Fear / Extreme Fear."
Bitcoin rebounded to a two-month high, significantly boosting market confidence, but traders remain cautious as market sentiment shows clear signs of warming.
Crypto investor sentiment has flipped to "Greed" for the first time since October last year, marking a noticeable increase in risk appetite after a fierce round of liquidation. Data shows that the Crypto Fear and Greed Index rose to 61 on Thursday. Just the day before, the index was still at 48 (Neutral), and in the previous two days and weeks, the market had long hovered in the "Fear" or even "Extreme Fear" zones.
Why did the sentiment collapse?
The weakening of sentiment began on October 11. On that day, the crypto market experienced a staggering liquidation event—about $19 billion in positions were forcibly closed in a single day, altcoins suffered heavy losses, and the market quickly shifted to risk aversion. In the following November and December, the sentiment index repeatedly fell into single digits or low double digits, reflecting traders' heightened caution towards risk assets.
The recent improvement in sentiment is highly synchronized with Bitcoin's price rebound. Over the past seven days, Bitcoin's price rose from about $89,800 to $97,704 on Wednesday, hitting a two-month high (Data source: CoinGecko). This trend effectively stabilized overall market confidence and also gradually restored risk appetite.
It is important to emphasize that sentiment indicators are more used for "understanding market conditions" rather than direct trading signals:
🧊Extreme Fear often appears near cyclical lows
🔥Persistent high greed usually approaches cycle tops
The current reading of 61 indicates that risk appetite is improving but has not yet reached the frenzy level typical of bubbles.
Conclusion: Sentiment recovery is rapid, but structure still needs validation
In just a few weeks, market sentiment shifted from panic to greed, highlighting the volatility of the crypto market. After Bitcoin reclaims key price levels, investors are reassessing risks, but whether prices can stabilize remains to be seen.
Greed is not necessarily a bad thing, but it often arrives earlier than structural confirmation. Do you think the current "Greed" marks the start of a new trend, or is it just sentiment recovery at the end of a rebound?
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