Greed Reawakens In Crypto Land After A Long Cold Stretch: The Bull Market Roars Back

The crypto winter is officially over. After a brutal bear market that tested even the most hardened believers, the animal spirits are back—and they're hungry.

The Fear & Greed Index Flips the Script

Remember the 'extreme fear' that dominated sentiment for months? It's been replaced by a surge of 'greed' across the market. The psychological pendulum has swung hard, with traders chasing momentum and narratives with renewed vigor. It's a classic cycle, but the velocity this time feels different.

Narratives Driving the Frenzy

Real-World Asset (RWA) tokenization is no longer a buzzword—it's a multi-billion dollar on-chain reality. Meanwhile, the memecoin casino is back in full swing, proving that for every institutional-grade thesis, there's a degenerate counterpart ready to pump a dog-themed token. Layer-2 networks are cutting gas fees and onboarding users at a breakneck pace, creating a fertile ground for this speculative bloom.

A Cynical Note for the Bulls

Let's be real—this resurgence of greed is as much about the fear of missing out as it is about technological conviction. The same Wall Street suits who called it a scam are now quietly building their own digital vaults, proving that in finance, hypocrisy is just a prelude to participation. The market doesn't reward the right; it rewards the ready.

The momentum is undeniable. The greed is palpable. The only question left is how high the wave goes before it crashes—and who gets caught holding the bag when the music stops.

Crypto Fear And Greed Shifts

The index combines several signals — price moves, trading activity, momentum, Google search interest and social media chatter — to produce a single reading. Based on reports, the measure fell into low double digits several times during November and December after the October sell-off. A score of 61 does not imply euphoria, but it does show growing confidence among traders after weeks of anxiety and patience being tested.

Bitcoin Price Rebounds

Bitcoin’s price has been moving in step with the improving mood. In the past seven days, bitcoin rose from $89,750 to a two-month high of $97,720 on Wednesday, according to data from CoinMarketCap. That level was last seen on Nov. 14, when the market was still struggling and sentiment readings were weak even as prices briefly touched similar highs. Market watchers say the recent rally has helped lift trader confidence and is one of the main reasons the index improved so fast.

According to market intelligence firm Santiment, there was a net drop of 47,244 Bitcoin holders over a three-day stretch. Reports have disclosed that many small investors left their positions, a reaction blamed on FUD and impatience. At the same time, the amount of Bitcoin held on exchanges fell to a seven-month low of 1.18 million BTC. Less supply sitting on exchange platforms tends to lower the immediate risk of a large, sudden sell-off.

Traders use sentiment tools as one input among many when deciding whether to buy, sell or wait. A return to “greed” suggests more people are willing to buy, which can push prices higher if buying pressure continues. On the other hand, sentiment can flip quickly; a sharp move back down WOULD likely make some traders nervous again. Analysts point out that a shrinking pool of retail participants can leave the market in the hands of more committed holders, which often supports steadier price action.

Based on reports and current readings, the market has shifted from anxiety toward a more upbeat mood, backed by Bitcoin’s recent gains and lower exchange balances. That combination is seen by many former skeptics as a healthier setup than the panic-filled trading seen after the October liquidations. The picture is cautiously positive: Optimism is rising, but the swings that define crypto markets have not disappeared.

Featured image from Unsplash, chart from TradingView