Bitcoin's Price Surge Above $90,000 Drives Greed Index to 72, But Sentiment Cools to 60

On April 23, the Crypto Fear & Greed Index reached a score of 72 out of 100, indicating a high level of greed and optimism among investors as Bitcoin's price surged above $90,000. However, despite Bitcoin maintaining its price above this level, the sentiment score has gradually declined to 60 by April 25, suggesting a cooling off of the initial enthusiasm.

This discrepancy between Bitcoin's price performance and the declining sentiment score has raised concerns among analysts about the sustainability of the current rally. Markus Thielen, head of research at 10x Research, expressed caution, stating that the stablecoin minting indicator has not yet returned to high-activity levels, which could signal a potential slowdown in the rally. Similarly, Bitfinex analysts noted that while Bitcoin's relative strength against US equities appears real, it is yet to be confirmed as structural.

Despite these concerns, some analysts remain bullish. Michaël van de Poppe, founder of MN Trading Capital, predicted that buyers are likely to step in, continuing the path toward a new all-time high. This optimism is supported by the strong inflows into US-based spot Bitcoin ETFs, which saw $2.6 billion in net inflows over the past four trading days leading up to April 24.

The crypto market continues to be heavily influenced by Bitcoin, with its dominance sitting at 64.39% and the altcoin season score at a low 17 out of 100. This indicates that the market is still favoring Bitcoin over altcoins, which could be contributing to the overall sentiment. Additionally, the tone of Bitcoin-related social media posts has flipped to bullish, further supporting the positive market sentiment.

In summary, while Bitcoin's price holding above $90,000 has pushed market sentiment to a two-month high, the gradual decline in the greed sentiment score suggests that investors are becoming more cautious. Analysts' concerns about the sustainability of the rally, along with potential profit-taking and broader market volatility, could be contributing to this shift in sentiment. However, the overall market sentiment remains bullish, and investors should continue to monitor the market closely for any signs of a potential reversal.