The crypto market’s emotion barometer has just shifted into the “greed” zone, marking a dramatic turnaround in investor sentiment. The Fear & Greed Index reached 64%, its highest level since July, signaling renewed optimism in the crypto ecosystem.
From fear to euphoria, anatomy of a crypto market reversal
While Bitcoin surprised observers by crossing the $66,000 mark, a level it had not reached since last July, greed is gaining ground among investors.
This remarkable performance is part of a context of sustained growth for several weeks. According to the data from CoinMarketCap, Bitcoin posted an increase of more than 11% over the last month, bringing its annual gains to more than 124%.
This meteoric rise is not limited to Bitcoin. The entire altcoin market is seeing renewed interest, with double-digit increases for many projects.
This general movement demonstrates a strong return to risk appetite among investors, despite a still uncertain global economic environment.
Market sentiment, as measured by the Crypto Fear and Greed Index, perfectly reflects this newfound euphoria. With a score of 64 points, the index is now in “greed” territory, a level it has not reached for several months.
A new bullish cycle in perspective?
This turnaround is all the more striking given that the month of August was marked by a period of extreme fear, with the index even hitting an annual low of 17 points on August 6.
Bitcoin's crossing of the $66,000 threshold and the surge in the fear and greed index raise questions about the sustainability of this trend.
Some analysts, like Markus Thielen of 10x Research, are raising the possibility of a crypto rally in the fourth quarter, fueled by a FOMO (Fear of Missing Out) phenomenon among investors.
However, caution remains in order. If the market seems to have regained its optimism, the macroeconomic and regulatory challenges weighing on the sector have not disappeared. The ability of Bitcoin to sustainably cross the major resistance of $68,300 will be decisive in confirming the entry into a new bullish cycle.
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