Bitcoin Rises Above $78,000 as Fear & Greed Index Leaves Extreme Fear Zone

Bitcoin climbed above $78,000 early Wednesday, rising about 2.t% in 24 hours, while the broader crypto market gained roughly 2.3%. Ethereum also increased by 2.7% to $2,386, showing synchronized strength across major digital assets. The move comes after weeks of volatility and renewed institutional participation.

The rally was driven by, U.S. President Donald Trump announced that he will extend the ceasefire with Iran to allow time for negotiations between the two countries, strong ETF inflows, and short position liquidations. Once Bitcoin broke above $75,000, leveraged short positions were forced to close, creating a short squeeze that accelerated price gains.

Spot Bitcoin ETFs have now recorded three consecutive weeks of net inflows, attracting around $1.8 billion in capital. Additional buying pressure was supported by institutional accumulation, including purchases linked to Strategy, which has increased its holdings significantly.

Fear & Greed Index Shows Improving Sentiment

The Crypto Fear & Greed Index has risen to 32, recovering from an “extreme fear” reading of 8 earlier in April. Analyst Dominick John noted this reflects cautious improvement rather than full bullish momentum, with investors gradually re-entering risk assets.

According to K33 Research, Bitcoin may continue to see short squeeze events due to rising leverage and negative funding rates. Analyst Nick Ruck added that Bitcoin must hold the $78,000–$83,000 range, supported by ETF demand and stable liquidity, to confirm sustained upward momentum.

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.