Crypto Fear and Greed Index Hits Greed for First Time Since 2025

Increased sentiment scores often lead to a tightening of spreads on major exchanges as liquidity providers adjust their models to account for higher demand. As participants move back into the market, the primary concern shifts from the risk of further downside to the risk of missing out on potential breakouts. This psychological pivot can lead to rapid adjustments in leverage, which in turn amplifies price swings during periods of low liquidity.

AlphaScala data indicates that the current sentiment shift is most pronounced in retail-heavy segments of the market, where social volume has seen a corresponding uptick alongside the index move. This suggests that the current Greed phase is being driven by individual participation rather than purely institutional inflows. The following list outlines the primary factors currently influencing this sentiment shift:

• Increased social media engagement regarding price targets.
• A reduction in net outflows from major exchange-traded products.
• Higher open interest in perpetual futures contracts across top-tier venues.

The Path to Sustained Momentum

For this sentiment to translate into a durable trend, the market requires consistent volume to support the higher valuations associated with Greed. If the index remains in this territory for an extended period, it may signal an overheating market that is susceptible to sharp corrections if external news cycles turn negative. Traders should observe whether the current sentiment is accompanied by a genuine expansion in on-chain activity or if it remains confined to derivative-led speculation.

The next concrete marker for this trend will be the upcoming monthly close, which will confirm whether the current sentiment shift is supported by institutional buying or if it remains a transient spike in retail optimism. If volume fails to follow the sentiment, the index may revert to neutral as quickly as it arrived at its current level.