Two and a half months stuck below $65,000, bitcoin jumped $15,000 to approach $80,000, its highest level in three months. While the crowd applauds and greed resurfaces, Warren Buffett frowns.
In brief
- Bitcoin’s Fear & Greed Index Over Time climbs to 71-72, a level of greed never reached during the January or May rallies.
- Strategy, Coinbase and Robinhood are soaring alongside the Bitcoin rally, amplifying the risk in the event of a reversal.
- Even critics of the Saylor model wonder about a real floor or a new greed trap.
Bitcoin: greed returns faster than expected
The recent monetary changes announced by the US Treasury have set things on fire! Bitcoin exploded from $65,000 to almost $80,000, hitting a three-month high. The indicator that deserves attention, however, is not the price, but rather the Fear & Greed Index Over Time which displays 71, then 72 the next day. A zone of greed that neither the January nor the May rally managed to reach.
This is only the second time since the start of the year that the index has fallen into the “greed”. Warren Buffett has a formula that every crypto investor should know by heart by now: be fearful when others are greedy, be greedy when others are fearful. Greed returns… Quickly… Too quickly perhaps for a Bitcoin market that was just emerging from a month and a half of slumber.
The bitcoin rally spills over to Wall Street
The movement does not stop at Bitcoin (BTC). Crypto-related stocks also soared in the US pre-market:
- Strategy, jumped 9.3%;
- Coinbase climbs 6.2%;
- Robinhood adds 5.1%;
- Hyperliquid follows with 3.2%;
- Bitcoin jumped 6.6% in the same session, crossing $77,800;
- Ethereum gains 2.7%.
Investors therefore seem to anticipate an American regulatory environment finally favorable to crypto. Except that a rally that simultaneously contaminates an asset, ETFs, brokers, and treasury companies is not an isolated and cautious movement… It’s a wave, and the waves go down just as quickly.
$80,000 for BTC: solid floor or greed trap?
Even crypto sector skeptics like analyst Niko Jilch are wondering. Bitcoin jumped 27%, is this the final bottom or just a new illusion? In any case, a macroeconomic turning point, signals on the yield curve and the movements of whales must be dissected. According to Jilch, staying on the sidelines right now is the biggest risk.
In other words, neither blind euphoria nor systematic distrust is enough to correctly read the bitcoin market at this precise moment. And that’s the whole problem with a Fear & Greed Index that climbs so quickly. He never says if the party has just started, or if it is already coming to an end.
Bitcoin (BTC) is currently flirting with $80,000, and investor greed has returned to levels not seen since last year’s worst crash. A rally that spilled over to listed stocks, transforming a simple price movement into a systemic phenomenon. In your opinion, should caution be applied, or does the market still have room?
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