Crypto Market Sentiment Index Rises to 3-Month High, Yet Remains in 'Fear' Zone

On April 23, data from Alternative.me showed that the Crypto Fear and Greed Index rose by 14 points in a single day, reaching 46 points, the highest level in over three months since January 18. The index had previously hit a historical low of 5 points on February 23 when Bitcoin fell to around $63,000 due to tariffs imposed by the Trump administration. This recent rebound was primarily driven by an increase in Bitcoin’s price, which rose by 5.9% to nearly $79,400 within about 20 hours, before retreating to around $77,900. The head of research at CryptoQuant noted that this surge was entirely driven by demand in the perpetual futures market, while spot demand is contracting. If traders begin to take profits, a market correction may occur. Despite the index’s rebound, it remains in the ‘fear’ zone, having failed to exit this area since January 18. Analysts pointed out that retail trader participation is lower than in previous market cycles, with sentiment indicators largely relying on retail-driven data such as social media activity and search volume.