Bitcoin has managed to stage a notable aid rally in latest days, with its worth approaching the $73,000 mark.
Nevertheless, market psychology is refusing to observe the worth motion.
The Bitcoin Worry and Greed Index, which exhibits whether or not merchants stay fearful or grasping, broader sentiment stays paralyzed at a rating of twenty-two.
For now, the cryptocurrency market stays entrenched within the “excessive greed” territory.
There are some considerations about this aid rally being only a flash within the pan.
As famous by former BitMex CEO Arthur Hayes, Bitcoin stays extremely correlated with software program and know-how shares. If the U.S. equities market stalls or reverses, Bitcoin’s present restoration might shortly be uncovered as a fleeting “useless cat bounce.”
The main cryptocurrency continues to be down a punishing 42.6% from the document excessive it established roughly 5 months in the past, CoinGecko information exhibits.
A sentiment rollercoaster
In early to mid-December 2025, market sentiment was already deeply depressed, with the index oscillating within the 20s earlier than plunging near a rating of 10 round Dec. 16.
Nevertheless, the beginning of the brand new yr introduced a short lived wave of optimism.
All through early January, the index launched into a steep upward trajectory, peaking at a rating of 61.
Following the January peak, the index suffered a precipitous collapse. By the ultimate week of January, sentiment had crashed again down into the 20s, totally erasing the brand new yr’s optimism.
The psychological harm compounded all through February, which proved to be a traditionally bleak month for crypto sentiment.
Throughout February, the index completely cratered. It has spent weeks scraping absolutely the backside of the chart.
The metric repeatedly registered single-digit scores. By the ultimate week of the month, it plunged to as little as roughly 5.
It’s only within the very early days of March that the index has proven any indicators of life. But, as the information exhibits, it takes a lot quite a lot of days of optimistic worth motion to heal months of psychological whiplash.
