The crypto market sentiment indicator has surged to its strongest level in more than three months as Bitcoin continues trading near the $77,000–$80,000 range.
The Crypto Fear & Greed Index rose 14 points to 46 out of 100, marking its highest reading since Jan. 18 and its largest single day gain in over three months. Despite the improvement, the index remains in the “Fear” zone, where it has stayed since mid January.
The latest rebound follows a nearly 6% Bitcoin rally, with Bitcoin briefly reaching around $79,400 before easing back toward $78,190, according to data. The move also lifted sentiment from an all time low of 5 recorded on Feb. 23, when BTC fell to about $63,000 following global tariff concerns.
Analysts note that the rally is being driven largely by derivatives markets rather than spot demand. CryptoQuant research head Julio Moreno said the recent upswing has been “completely driven by demand in the perpetual futures market”, while spot demand continues to contract gradually.
He warned that if profit-taking increases while spot demand weakens further, a correction could follow.
Long-Term Holders Accumulate as Short-Term Traders Exit
CryptoQuant data also shows more than 300,000 BTC moved into long-term holder wallets over the past 30 days, while short-term holders have been selling. The firm noted that supply is shifting into “stronger hands,” with institutional accumulation contributing significantly.
For example, investment firm Strategy reportedly accumulated 53,000 BTC in the last month, reinforcing long-term holding trends.
Bitcoin’s climb has unfolded amid ongoing geopolitical uncertainty, including unresolved tensions between the U.S. and Iran over control of the Strait of Hormuz, adding further volatility to the market backdrop.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.