Bitcoin Investor Sentiment Skyrockets to ‘Very Bullish’—Here’s Why It Matters in 2025

Bitcoin’s mood ring just flashed green—and Wall Street’s ‘experts’ are scrambling to justify their earlier doom predictions.

The Fear & Greed Index Does a 180

After months of sideways action, crypto’s favorite sentiment tracker has rocketed back into ‘extreme greed’ territory. Retail FOMO meets institutional FOMO—with a side of leverage.

Liquidity Tsunami Ahead?

Traders are front-running what they think is coming: another cycle of money printers going brrr while regulators pretend stablecoins are the real problem.

The Punchline

When Bitcoin gets this frisky, two things happen: Lambo memes return, and your broker suddenly remembers they ‘always believed in blockchain.’ Buckle up.

Bitcoin Sentiment Recovers From Bearish 

In a July 4 post on the social media platform X, crypto analytics firm Alphractal revealed that the Bitcoin investor sentiment is “very bullish.” This on-chain observation is based on the Alpha Crypto Sentiment Gauge metric. 

As its name suggests, the indicator evaluates the emotions of investors in the market, ranging from extreme fear to euphoria. These emotions are represented as color-coded interpretations, usually in red, yellow, light green, and dark green, and these further represent investor sentiment ranging from bearish to very bullish.

In the chart shared by Alphractal above, the appearance of a dark green colour signals that the market sentiment is “very bullish” at the moment.

Prior to their July 4 post, Alphractal reported in a June 23 post that the market sentiment was flashing bearish signals. In the post on X, the analytics firm warned that the bears could be in trouble. Interestingly, the bears were indeed in trouble, as bitcoin picked up more buying momentum, consequently liquidating several bearish positions.

However, Alphractal explained that sighting green does not necessarily mean the market may be at a top. Instead, it signals that euphoria is taking over the market, which, according to the analytics firm, unlocks a wave of opportunities for Bitcoin buyers.

Alphractal said:

On the other hand, red zones are usually short-lived, but offer exceptional buy opportunities — like no other indicator can.

As the market displayed, the bearish signal interpreted from the Sentiment Gauge eventually provided more buying opportunities. Growing market euphoria is not the only meaning that can be derived from a green signal in the market. It could also serve as a warning for potential overconfidence in the market as Bitcoin continues to gain value. 

If history is anything to go by, the market could experience rapid price expansions and an increase in investor risk-on approach. On the other hand, the “very bullish” sentiment could also precede sharp corrections, especially if fueled by crowd emotion, rather than market fundamentals. Whether this green sentiment signals the next price leg up, or the establishment of a market top is yet to be known — as a result, traders are advised to remain alert. 

Bitcoin Price At A Glance 

After its early show of strength on Thursday, Bitcoin has lost nearly 2% of its value in the past 24 hours. As of this writing, the premier cryptocurrency is valued at about $107,754.