The Crypto Fear & Greed Index recently climbed to 70, marking one of the strongest sentiment spikes in months. At press time, it cooled to 60, but that still firmly places it in the Greed zone, a sign of sustained confidence rather than a short-lived mood swing.
This optimism comes alongside a 2.38% jump in global crypto market cap, now sitting at $4.05 trillion. In the last 24 hours alone, Bitcoin [BTC] gained 3.33% to hit $121,706, while Ethereum [ETH] rose 2.02% to $4,271.
While this looks like smooth sailing, seasoned traders know the pattern: periods of high greed often precede a cooling-off phase. Historically, such peaks have led to price pullbacks or sideways action as investors secure profits and sidestep inflated valuations.
When crypto greed signals opportunity and danger at once
While the current sentiment shows strong market conviction, it also serves as a flashing caution light for traders driven by FOMO. Santiment data adds weight to this cautious view, both Bitcoin and Ethereum’s RSI are sliding lower after touching overbought territory.
That combination? Often a setup for a near-term pullback. But in a market as unpredictable as crypto, “often” doesn’t mean “always.”
Bitcoin dominance keeps bulls in control
If one number is helping sustain the bullish tone, it’s Bitcoin’s market dominance, now at 60.80%. This level hints at a “flight to safety,” with traders leaning heavily on BTC’s liquidity and stability during volatile swings.
When BTC dominance is high, it can keep the broader market lifted for longer, even during sentiment extremes. If this continues, greed could stretch further before the first serious shakeout.
Crypto community reactions paint two sides of the coin
One X user summed up the optimism with:
“And they said crypto was dead. This is just the beginning fam – if we map the growth trajectory to traditional markets, we’re looking at serious upside potential. Remember when $1T seemed impossible? Now we’re at $4T and the fear/greed index is only at 62.”
Sebastian Diaconu offered a more balanced take, praising the upside but also flagging what’s missing:
“Fear-Greed meter is still at decent levels, which means there is a lot of upside potential.”
On the flip side, he noted:
“Altcoin season that everyone is waiting for is not happening. At least not now. Yes, we have Ethereum, XRP and… that’s about it. So, the major question is: will there be an Altcoin Season or not?”
Greed doesn’t always end in a crash
High greed doesn’t automatically mean a sudden drop. Take 23 May as an example, the Index hit 78, labeled “Extreme Greed,” just as Bitcoin climbed to $111.8k. The rally didn’t collapse immediately; instead, bullish momentum kept pushing before any real correction hit.
This history lesson means one thing: while conditions may be overheated, there’s still room for further upside before the inevitable recalibration. Traders just need to decide whether they’re ready to ride the wave, or step aside before the tide turns.
