Crypto Fear & Greed Index hits three-month high

The Crypto Fear & Greed Index climbed to 46, a 14-point increase from the prior reading. It was the index’s largest single-day gain since Jan. 18 and its highest level since that date. The gauge remains in the “Fear” zone.

Alternative.me calculates the index using price volatility, market sentiment, social media activity and search trends. The measure hit a record low of 5 on Feb. 23 after a policy shock that pushed Bitcoin to about $63,000.

Bitcoin rose 5.9% over a roughly 20-hour span on Wednesday to nearly $79,400 before easing to about $77,920, according to CoinGecko. The uptick brought the price close to the $80,000 level.

Julio Moreno, head of research at CryptoQuant, wrote on X that the rally was “completely driven by demand” in the perpetual futures market. CryptoQuant also flagged a gradual contraction in spot demand and noted a pullback could occur if traders take profits while spot purchases slow.

CryptoQuant reported more than 300,000 Bitcoin moved into long-term holder wallets over the past 30 days. The firm added an entity it labeled “Strategy” accounted for roughly 53,000 Bitcoin purchases in the last month, while shorter-term holders reduced their positions.

Market participants pointed to a split between institutional momentum and retail engagement. Institutional crypto adoption and a relatively crypto-friendly policy agenda in Washington have coincided with price support, while retail-driven indicators have not returned to levels seen in prior cycles, Matt Hougan, chief investment officer at Bitwise, observed.

Because the index weights market sentiment and search interest alongside price and volatility, a rally concentrated in derivatives trading can raise prices without an immediate rise in retail sentiment, analysts noted.