Crypto Fear & Greed Index Flips to 'Greed' for First Time Since October

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Bitcoin surged past $95,000 on January 14, 2026, triggering over $700 million in liquidations of short positions across crypto markets. The rally was fueled by renewed institutional demand and easing inflation concerns following the U.S. Bureau of Labor Statistics' release of softer-than-expected core inflation data. On-chain data also showed a massive inflow of BTC into major exchange wallets, totaling around $6 billion in combined buying power.

The Crypto Fear & Greed Index, a key sentiment indicator, rose to 52, marking the first time since October that it has moved out of the fear zone and toward greed. This indicates improving sentiment among market participants after weeks of cautious trading. While still in the neutral zone, the index reflects a shift in investor behavior toward optimism and risk-taking.

U.S. spot Bitcoin ETFs recorded the highest single-day inflow of $753.73 million on January 13, the largest since October 2025. Fidelity's FBTC led with $351 million in inflows, followed by Bitwise's BITB with $159 million and BlackRock's IBIT with $126 million. This surge in demand suggests that institutional investors are returning to the market after year-end portfolio adjustments and tax-related selling in late 2025.

Why Did This Happen?

The Bitcoin rally was supported by a combination of improved macroeconomic conditions and renewed institutional interest. The softer-than-expected U.S. inflation data reduced fears of aggressive rate hikes, supporting risk assets like crypto. At the same time, large inflows into Bitcoin ETFs signaled a return of institutional capital, which historically has been a strong tailwind for Bitcoin prices.

Bitcoin's price action also benefited from bearish liquidations, with over $290 million in short positions being closed out in 24 hours. This added further upward momentum to the asset, which has been in a consolidation phase for over a month.

How Did Markets Respond?

Ethereum and XRP also benefited from the broader bullish sentiment. Ethereum spot ETFs extended their inflow streak for the second consecutive day, with $130 million in inflows. XRP ETFs saw nearly $13 million in inflows on January 13, despite only recording one outflow since their launch in November.

The broader crypto market responded positively to the trend, with the total market capitalization rising above $3.3 trillion. Ethereum rose over 6% to $3,320, while Bitcoin continued to hover near $95,000.

What Are Analysts Watching Next?

Technical indicators suggest that Bitcoin could continue its upward trajectory. The MACD remains in a buy signal, and a close above the 100-day EMA at $95,987 would confirm the short-term bullish outlook. However, key resistance levels remain ahead, including the 200-day EMA at $99,581.

Analysts are also monitoring the RSI for Bitcoin. If the RSI drops toward the 50 midline, the path of least resistance may flip downward, leading to a potential correction toward $90,000. For Ethereum, a break above the 200-day EMA at $3,339 could accelerate the bullish momentum toward $3,447.

Investors are also keeping an eye on Bitcoin's on-chain activity. The decline in Bitcoin held on centralized exchanges suggests a maturing market structure, where long-term holders are increasingly opting for custodial solutions over active trading. This shift is seen as a positive sign for the asset's adoption and stability.

The overall market environment remains supportive, with investors weighing macroeconomic factors and central bank policies. The Federal Reserve's stance on interest rates and the trajectory of inflation will continue to play a crucial role in determining the direction of Bitcoin and other cryptocurrencies.