On January 15, news, the cryptocurrency market has shown a clear rebound in investor sentiment after nearly three months of downturn. Data indicates that since October last year, the Cryptocurrency Fear and Greed Index has entered the “Greed” zone for the first time, reflecting a recovery in market risk appetite.
According to data released by Alternative.me, the Cryptocurrency Fear and Greed Index rose to 61 on Thursday. In the previous weeks, this indicator had been hovering in the “Fear” and “Extreme Fear” zones, and just the day before, the index remained at a neutral level of 48. This change indicates a significant short-term reversal in market sentiment.
Looking back at previous market conditions, a large liquidation event on October 11 became a key turning point for sentiment weakening. On that day, approximately $19 billion worth of crypto assets were liquidated, with altcoins suffering heavy losses, and a rapid spread of risk-averse sentiment. In the following weeks, the index fell into double digits multiple times in November and December, showing traders’ high alertness to market volatility.
Recent sentiment improvement is closely related to the rebound in Bitcoin prices. Market data shows that over the past seven days, Bitcoin’s price has steadily risen from around $89,800 to nearly $97,700, reaching a new high for the period. The strength of Bitcoin has somewhat alleviated previous pessimistic expectations and provided emotional support for the overall cryptocurrency market.
It is important to note that the Fear and Greed Index is more of a sentiment reference indicator rather than a direct trading signal. Historically, extreme fear often appears near market bottoms, while persistent greed at high levels may coincide with market tops. Currently, a reading of 61 indicates a risk appetite recovery but has not yet reached an obviously overheated level.
In the current context, the rapid shift in market sentiment highlights the high sensitivity of crypto asset prices to changes in expectations. Bitcoin has essentially recovered the losses from its sharp decline in October last year. Whether the price can stabilize at high levels will continue to be a core focus for traders and investors.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin Rebounds Without Increase in Open Interest, May Still Be Range-Bound
On March 19, when Bitcoin's price declined, open interest (OI) rose instead, showing that short positions increased, with price touching around $68,750. The current rebound lacks new long position support and appears more like range-bound consolidation. Attention should be paid to changes in price and OI.
GateNews45m ago
Over the past 24 hours, the entire network has liquidated $311 million, with long positions accounting for 64% of liquidations.
On March 20, Gate News reported that across the entire network over the past 24 hours, liquidations reached $311 million, with long positions liquidated for $200 million and short positions liquidated for $111 million. Both long and short positions in Bitcoin and Ethereum experienced varying degrees of liquidation, with 103,431 people globally liquidated. The largest single liquidation occurred on the XYZ:GOLD-USD trading pair, valued at $3.675 million.
GateNews1h ago
BTC Breaks Through $72,000, Mainstream CEX Cumulative Short Liquidation Intensity to Reach $590 Million
According to Coinglass data, if Bitcoin breaks through $72,000, short liquidations on mainstream CEX will reach $590 million; if it falls below $70,000, long liquidations will reach $275 million. The liquidation chart reflects the intensity of market impact, not the precise number of liquidation contracts.
GateNews1h ago
BTC breaks through $71,000, 24-hour gain of 1.23%
Gate News, on March 20, according to Gate market data, BTC/USDT is now trading at $71006.6, with a 24-hour increase of 1.23%.
GateNews2h ago
