Crypto Fear and Greed Index Reaches 61 on Bitcoin Rally

The Crypto Fear and Greed Index, a widely followed gauge of investor sentiment in the cryptocurrency market, has entered greed territory for the first time since a massive liquidation event in October, reaching a score of 61 on Thursday. This shift coincides with Bitcoin's rally to a two-month high above 97,000, signaling renewed optimism among traders after months of caution.

The index, which aggregates data on price volatility, trading volume, market momentum, Google search trends, and social media sentiment, had languished in fear or extreme fear zones through much of late last year. It plummeted to low double digits multiple times in November and December following the October 11 episode, when approximately 19 billion in positions were liquidated across digital assets. That event triggered widespread selling, particularly in altcoins, and drove many retail investors to the sidelines amid heightened anxiety. Just a day before the latest reading, the index stood at 48 in neutral territory, highlighting the rapid turnaround in market psychology.

Bitcoin's price movement has been a key driver of the improved sentiment. Over the past seven days, the cryptocurrency climbed from...