Bitcoin’s Fear and Greed Index has climbed to 61, marking its first move into “greed” territory since early October. The shift comes after nearly three months in “fear” or “extreme fear,” reflecting improving investor sentiment and renewed confidence in BTC—though it may also hint at short-term overheating.
Sentiment Shifts as BTC Rallies
Bitcoin bulls have enjoyed several strong sessions, with BTC recently spiking to nearly $98,000, a two-month high. The rally unfolded amid heightened geopolitical tensions, including U.S. military actions in Venezuela and threats of intervention in Iran, where large-scale protests erupted.
More recently, U.S. President Donald Trump softened his stance, stating that violence had subsided and promising not to authorize an attack. The comments had little impact on Bitcoin’s price, which is currently hovering near $96,000 and up roughly 7% over the past week.
As prices climbed, the Bitcoin Fear and Greed Index—based on factors such as volatility, market momentum, surveys, and social media activity—rose to 61. While this signals stronger demand and optimism, it can also suggest that some traders are acting on FOMO, increasing the risk of a near-term correction. Historically, readings in the “greed” or “extreme greed” zones have sometimes preceded local market tops.
More Upside Ahead?
Despite cautionary signals, many analysts remain bullish. Crypto trader Jelle believes Bitcoin could reach $100,000 in the coming weeks, while analyst Ali Martinez has suggested that a breakout above $94,500 could open the door to a rally toward $105,921.
On-chain data also supports the bullish case. Wallets holding between 10 and 10,000 BTC have accumulated more than 32,600 BTC since January 10. At the same time, smaller “shrimp” wallets holding under 0.01 BTC have been selling. According to Santiment, this divergence often sets the stage for a sustained bull run.
