Bitcoin News Today: Crypto Greed Index hits 60-70 as Bitcoin climbs above $122,000 on ETF inflows

The cryptocurrency market is currently exhibiting a marked shift toward optimism, as reflected in the latest readings of the Crypto Fear & Greed Index. According to the index, which aggregates multiple metrics to assess market sentiment, current levels have moved into the “Greed” zone, with scores in the 60–70 range. This suggests a growing appetite for risk among investors and a general sense of confidence in the market [1].

The index, developed and tracked by platforms including Alternate.me and Binance, is regarded as a key barometer of emotional cycles in the crypto space. A score above 60 traditionally signals that greed is beginning to dominate investor behavior, while values approaching 80 or higher have historically been associated with market overextension and eventual corrections [2]. Binance has noted that while “Greed” readings may indicate bullish momentum, they also serve as a cautionary signal, as they often precede market pullbacks [3].

Bitcoin has recently traded above $122,000, a development that aligns with the rising sentiment. This upward movement is attributed to several factors, including the inclusion of Bitcoin in U.S. 401(k) retirement plans under a recent executive order and the continued inflow of capital into spot Bitcoin ETFs. Over the past three trading days, ETFs collectively added $773 million in Bitcoin, further reinforcing bullish momentum [4].

Henrik Andersson, Chief Investment Officer at Apollo Crypto, remarked that the recent price action was long overdue, especially after a month of consolidation. He emphasized the role of institutional buyers, particularly treasury companies, in driving demand for Bitcoin. Additionally, MicroStrategy CEO Michael Saylor reaffirmed the company’s commitment to accumulating more Bitcoin, noting that continued buying is essential to maintaining upward price trends [5].

Ethereum has also seen a significant boost, with the second-largest cryptocurrency by market cap rising from $1,435 on April 9 to $4,315 as of the latest report. Alongside Bitcoin’s performance, the broader crypto market has reached an all-time high market capitalization of $4.14 trillion [6].

While sentiment is strong, it has not yet reached levels that suggest extreme speculation. Google search interest in Bitcoin currently stands at 48 out of 100, far below the peak observed in mid-November 2024. This data implies that while optimism is growing, it has not yet reached a point that could lead to immediate and widespread market corrections [7].

Historical patterns indicate that periods of extreme greed—where the index exceeds 80—have often been followed by corrections. April’s market conditions, which were similarly characterized by high sentiment and rising prices, eventually led to adjustments. Analysts caution that while current conditions remain favorable, they should not be taken as a signal to ignore potential market volatility [8].

The interplay between sentiment and price movement continues to shape the crypto landscape, with the Fear & Greed Index serving as a useful tool for assessing market psychology. As Bitcoin and Ethereum continue to break new ground, investors are advised to remain vigilant to the signals provided by sentiment indicators, which can offer insights into when to adjust strategies amid shifting conditions.

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Source:

[1] The crypto market maintains a state of 'greed', fully ... (https://www.binance.com/en/square/post/28157****26314)

[2] Bitcoin News Today: Crypto Fear & Greed Index Hits 70 as ... (https://www.ainvest.com/news/bitcoin-news-today-crypto-fear-greed-index-hits-70-market-enters-greed-phase-2508/)

[3] Bitcoin Surges Past $122K on ETF Inflows and Pro-Crypto ... (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-surges-122k-etf-inflows-pro-crypto-policy-boost-2508/)

[4] BTC, ETH, push crypto market to new highs (https://cointelegraph.com/news/bitcoin-rises-above-122000-after-positive-week)