A crypto market sentiment index climbed to its highest level in more than three months on Wednesday, as Bitcoin surged nearly 6% to approach the $80,000 mark.
The Alternative.me Crypto Fear & Greed Index jumped 14 points to 46 out of 100—its strongest reading since Jan. 18 and the biggest single-day increase in over three months.
Despite remaining in the “Fear” zone, the latest reading marks a strong recovery from the all-time low of 5 recorded on Feb. 23, when a 15% global tariff imposed by the Trump administration sent Bitcoin tumbling to around $63,000.
The sentiment index has stayed in the Fear range since Jan. 18, even as institutional adoption of crypto continues to grow on Wall Street and policymakers in Washington adopt a more favorable stance toward the industry.
Still, Bitwise chief investment officer Matt Hougan and others have pointed out that retail participation remains muted compared to previous market cycles. The Crypto Fear & Greed Index factors in signals such as social media activity and Google search trends—metrics largely driven by retail investors.
Bitcoin climbed 5.9% over a 20-hour stretch on Wednesday to nearly $79,400 before easing back to around $77,920, according to CoinGecko data.
Perpetual futures driving rally
In a post on X, CryptoQuant’s head of research, Julio Moreno, said the latest rally has been “entirely driven by demand” in the perpetual futures market.
He cautioned, however, that spot demand has been gradually declining, raising the risk of a correction if traders begin locking in profits while underlying demand continues to weaken.
In a separate update, CryptoQuant noted that more than 300,000 Bitcoin have moved into long-term holder wallets over the past month, while short-term holders have been selling.
“Bitcoin supply is moving into stronger hands,” the firm said, adding that Strategy alone has accumulated 53,000 Bitcoin during that period.
Bitcoin’s push toward $80,000 comes amid ongoing geopolitical uncertainty in the Middle East, as the United States and Iran continue to struggle to reach an agreement over the management of the Strait of Hormuz.
