BTC Fear & Greed Index Breaks Free From Fear Zone - First Time Since October 23rd
Market sentiment flips bullish as Bitcoin's emotional barometer finally escapes the fear trap.
The Great Unshackling
After months trapped in the psychological doldrums, Bitcoin's Fear & Greed Index has clawed its way back above the fear threshold. The last time traders felt this optimistic? October 23rd - back when traditional finance was still pretending crypto would just disappear.
What The Shift Means
This isn't just some abstract metric moving a few points. Breaking free from fear territory signals genuine momentum shift - the kind that makes Wall Street veterans suddenly remember they 'always believed in blockchain technology.'
The index's escape from fear range suggests growing confidence among both retail and institutional players. Meanwhile, traditional bankers are probably still trying to figure out why their 'secure' 0.5% savings accounts aren't attracting millennials.
The Road Ahead
Market psychology has officially turned a corner. Whether this marks the start of sustained bullish momentum or just a temporary reprieve remains to be seen - but for now, fear has left the building.
BTC dominance rises in 24 hours
Cryptorank data shows that BTC’s dominance ROSE by 0.12% to over 55%, as BTC settled at $115,566 in the last 24 hours amid the positive shift in sentiment. Bitcoin’s spot volume gained 31.1% to over $75 billion, while its market cap surged 2.76% to reach over $2.3 billion over the same period.
Meanwhile, historical BTC dominance data from Coingecko also reveals that the coin’s dominance was 57.55% in the past week (-3.3%), 56.21% (-1.9%) in the past 30 days, 60.14% (-0.8%) in the past three months, and 55.12% in the past year. Lookonchain claims that this dominance is driven by investor confidence.
However, the Cryptorank chart also shows that BTC’s dominance has been moving sideways in the 54%-55% range since mid-October. Bitcoin has maintained a market share of 57.8% this week.
Bitcoin enters a silent phase of accumulation
Cryptopolitan reported five days ago that BTC appears to be entering a period of silent accumulation, as selling pressure on exchanges has dropped significantly. CryptoQuant analysts also noted that short-term sentiment is fragile, although the netflow trend presents a different picture. They explained that even though daily inflows are noisy, the 30-day average provides a clearer picture, adding that the strongly negative trend indicates accumulation.
The analysts also claimed the current pattern suggests that investors hold their assets off-exchange, rather than exiting the market entirely. They referenced historical data, saying that this dynamic often precedes renewed upward momentum. On-exchange Bitcoin reserves have declined since the beginning of this month.
CryptoQuant’s BCMI (Bitcoin Combined Market Index) has also retraced to the neutral zone, the midpoint between undervaluation and overvaluation during the coin’s market cycles. Previous cycles in 2024 and 2020 indicate that a retest of the 0.5 level marks the end of a corrective phase, which also precedes new expansion phases.
The CryptoQuant team emphasizes that all components indicate a structural mid-cycle correction, rather than a macro top. Meanwhile, they believe momentum could resume to a new local high if BCMI rebounds from 0.5 to 0.6. However, extended consolidation may follow if it breaks below 0.45.
The team further explained that Bitcoin’s MVRV of 1.8, which is well below the historical valuation levels above 3.0, and the SOPR of nearly 1.02, indicate a balance between profit-taking and accumulation. They believe this is the cooling period when speculative activity declines and long-term value metrics reset.
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