Rabat – As investor sentiment turns positive for the first time since October, crypto markets are showing signs of renewed confidence after months of caution.
According to the Crypto Fear and Greed Index, a widely followed measure of market mood, sentiment moved into “greed” territory today with a reading of 61. Just a day earlier, the index stood at 48, which signals a neutral outlook.
The shift ends a long stretch dominated by fear and extreme fear, reflecting how quickly attitudes have changed in recent days.
Published by data provider Alternative.me, the index tracks factors such as price movements, volatility, and trading activity to capture how investors are feeling. While it is not meant to predict prices, it offers a snapshot of confidence levels across the market.
Cautious optimism
The return of positive sentiment follows a turbulent period that began in October. On October 11, crypto markets were shaken by a major liquidation event that wiped out roughly $19 billion in a single day.
Prices fell sharply, especially among smaller digital assets, and many investors pulled back from risk. The sentiment index dropped into low double digits several times throughout November and December, signaling deep unease and uncertainty.
Since then, conditions have gradually improved, largely alongside a recovery in bitcoin prices. Bitcoin rose from around $89,800 over the past week to reach $97,704 on Wednesday, its highest level in two months, according to CoinGecko.
The steady climb has helped calm nerves and restore a degree of confidence across the broader market.
Despite the shift, the current reading suggests a cautious form of optimism rather than excitement.
A score of 61 indicates that investors are more willing to take risks than they were in recent months, but it remains well below levels typically associated with overheated markets.
Market watchers often treat sentiment indicators as context rather than instructions. Periods of extreme fear have tended to coincide with moments when prices were under heavy pressure, while prolonged greed has appeared to emerge when markets are already running hot.
At its current level, the index reflects improving confidence without signs of widespread excess.
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