In just a few days the crypto market has shifted a lot. Swinging in between “Fear” and “Extreme Fear” levels for months, the crypto sentiment has now shifted to “Greed.”
At press time too, the Crypto Fear and Greed Index was at 68 in the “Greed” zone. CoinShares recent report on ‘From despair to greed in a week: a rally is not a verdict’ shed light on the fact that the current environment has become friendly for Bitcoin’s rally.
It does not yet signify that there is a fundamental improvement across the entire crypto industry.
How did things change in a few days?
Jean-Marie Mognetti, CEO of CoinShares, believes that the environment surrounding digital assets has become more favorable, especially for Bitcoin [BTC], but most individual crypto projects have not suddenly become stronger businesses simply because prices have risen.
Mognetti put it best when he said,
This is where the rally becomes more dangerous to interpret.
Just a month earlier, more than 100 crypto projects had reportedly shut down, entered bankruptcy, or disappeared in 2026. Major industry names were also announcing closures or filings, creating the impression that the crypto sector was entering another major downturn.
Then the situation changed rapidly. Bitcoin moved back above $80,000, other digital assets followed, and options traders started making large bets that Bitcoin could move above $82,000.
What’s happened behind the scenes?
Multiple factors contributed to this rally. The top most being the last week’s White House meeting, wherein President Trump urged Congress to pass a “fair version” of the CLARITY Act. Treasury buybacks, a hawkish Fed tone, and US federal debt moving beyond US$40 trillion are other such factors.
However, yet despite this, the recent rally has not addressed the fundamental problems that caused 100+ crypto projects to disappear in 2026. Many failed because they ran out of funds, or suffered security issues, while crypto exploits caused more than $1 billion in losses in H1 2026.
All these confirm that the rally has genuine support from a better macro backdrop, but rising prices do not automatically validate every asset.
Mognetti added,
What deserves scepticism is the assumption that a rising market validates everything rising with it.
This is because a similar level of greed preceded Bitcoin’s 30%+ correction in October 2025.
This time too, total crypto market cap has surged over 22% in a week, but weekly RSI is in extremely overbought, hence cation remains. However, longer-term data still suggests room for the rally to continue.
Crypto sentiment hasn’t reached peak greed yet
In all this, institutional demand remains a key difference. Spot Bitcoin ETFs saw over $1 billion in inflows last week, alongside a 21% BTC rally, but October inflows exceeded $3 billion, leaving room for stronger demand.
The Coinbase Premium Index also previously reached 0.18, reflecting strong US accumulation, a signal currently absent. Therefore, despite short-term overbought conditions, sentiment around 75 may not yet mark peak greed or guarantee an imminent correction.
Final Summary
- All these changes happened on the heels of Bitcoin moving back above $80,000.
- However, some concerning data still suggest room for the rally to continue.
