This shift is now visible in sentiment indicators. The Crypto Fear & Greed Index has moved back into positive territory for the first time since October, signaling a notable change in investor psychology.

October’s Liquidity Shock Left a Lasting Mark

The October liquidation event, which saw roughly $19 billion exit crypto markets, triggered a sharp break in confidence. In the weeks that followed, sentiment remained heavily pressured, with the index slipping into historically low levels throughout November and December.

During that period, price action took a back seat to uncertainty. Risk perception dominated decision-making, and most participants opted for a wait-and-see approach rather than aggressive positioning.

Price Recovery Finds Support in Sentiment

That dynamic has begun to shift in recent days. As Bitcoin climbed back toward two-month highs, sentiment indicators followed. According to CoinGecko data, BTC rose from $89,799 to as high as $97,704 over the past week, with prices hovering around $96,414 at the time of writing.

What stands out is not just the price move, but the context around it. When Bitcoin last traded above $97,000 in mid-November, market sentiment was still firmly in “extreme fear” territory. Investors at the time largely viewed the rally as fragile and short-lived.

This time, price strength is accompanied by improving expectations — a subtle but meaningful shift.

A Telling Comparison With November

The contrast becomes clearer when looking back to November 14. Prices were at similar levels, yet sentiment was markedly different. Fear dominated, and concerns over further downside overshadowed any optimism.

Today, comparable price levels are being met with a constructive outlook rather than skepticism. That divergence suggests the market’s internal narrative has changed, even if conviction remains measured.

On-Chain Data Points to Controlled Optimism

Blockchain data reinforces this more nuanced picture. Santiment reports that over the past few days, 47,244 Bitcoin-holding wallets have exited the market — a sign that short-term retail participants may be reducing exposure amid lingering uncertainty.

At the same time, Bitcoin balances on exchanges have fallen to around 1.18 million BTC, the lowest level in seven months. Market participants often interpret declining exchange balances as a reduction in immediate selling pressure, since assets held in private wallets are less likely to be sold quickly.

Taken together, the data suggests a market that is stabilizing rather than overheating.

A Shift in Tone, Not a Rush to Euphoria

While sentiment has clearly improved, the broader picture remains restrained. Prices are rising, but behavior points to normalization rather than exuberance. Investors appear more comfortable taking exposure, yet remain selective and disciplined.

For now, the return of “greed” reflects a recalibration in expectations — not a full embrace of risk.

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The post BTC’s Greed Returns as Market Sentiment Index Hits 61 appeared first on Coin Engineer.

Bitcoin ETF Flows and Cautious Movement in On-Chain Data 

Despite the rapid rise in Bitcoin prices, on-chain data does not indicate excessive euphoria. This suggests that the market is not experiencing “irrational exuberance,” and investors are acting cautiously. Therefore, the price increase is based on solid foundations. 

Furthermore, the ARK Invest report relies on Glassnode data. Bitcoin’s unrealized profits in this cycle are slightly above average. Historically, irrational exuberance has seen levels go over three standard deviations. However, such extreme excitement is not evident at present. In May, Bitcoin ETF inflows remained strong compared to gold ETFs, which fell from $9.2 billion to $1.5 billion. The value of Bitcoin-traded products increased by over 120%. On June 10, 2025, net inflows into spot Bitcoin ETFs reached $422 million, while spot Ethereum ETFs saw $125 million in inflows. 

Weakening US Economy Boosts Interest in Bitcoin 

In the U.S., rising costs and declining demand in the housing, automotive, and services sectors are causing economic slowdown. In this environment, Bitcoin is emerging as an alternative store of value. Known as digital gold, Bitcoin is strengthening its reputation as a safe haven during uncertain economic times. 

Bitcoin Core Development Activity at a 10-Year Low 

According to the report, Bitcoin Core development activity has dropped to its lowest level in the past decade. This decline indicates that Bitcoin has shifted from being a technology-driven innovative project to a stable and reliable monetary asset. Bitcoin is now more prominent as a store of value and a medium of exchange rather than a tech development platform. 

The record level Bitcoin reached in May 2025 was critically influenced by investor interest in spot Bitcoin ETFs. The 121% increase in ETF inflows demonstrates the growing strength of digital assets compared to traditional investment tools. On the other hand, the outflows from gold ETFs—previously seen as a safe haven—signal a change in investor risk perception. 

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The post Critical Data from ARK Invest Report: Historic Surge in Bitcoin and ETFs  appeared first on Coin Engineer.

On-Chain Data Signals an Uptrend for Bitcoin 

Bitcoin is currently trading at a strong support level. On-chain analysis suggests that if this level holds, the uptrend will gain momentum. Technical analysts warn that failure to maintain this level could lead to a downward correction. 

According to Glassnode data, the MVRV ratio currently indicates that investors hold substantial unrealized profits. BTC is trading between $100,200 and $119,400, a range historically seen before local price peaks. Historically, when Bitcoin enters this range, price rallies are often followed by corrections. Therefore, investors should reconsider profit-taking strategies based on MVRV analysis. 

MVRV Ratio compares #BTC's market price to the average investor cost basis – helping gauge when investors hold outsized unrealized profits.
We're now trading between +0.5σ ($100.2K) and +1σ ($119.4K) bands, a zone that has often preceded local tops. pic.twitter.com/NQvB01CN3H

— glassnode (@glassnode) May 30, 2025

In the past two days, large investors whales have accumulated over 20,000 BTC. These aggressive buys show strong bullish expectations. This market activity highlights the importance of niche analyses such as whale buying signals and crypto accumulation phases. Renowned analyst Michael van de Poppe predicts Bitcoin could reach all-time highs this year. 

BTC Index 

The Bitcoin index has given initial signals of a rise. These indicators suggest a potential upward breakout soon. BTC Relative Strength Index (RSI) is around 56, indicating the market is neutral and not in overbought (above 70) or oversold (below 30) zones. 

Long-Term Bitcoin Outlook: $1 Million Target? 

Finance expert Robert Kiyosaki predicts Bitcoin could surpass $1 million in the future. Such long-term forecasts boost the adoption of crypto assets as stores of value. Concepts like BTC long-term investment, digital gold strategy, and portfolio diversification are back on investors’ radar. 

If BTC maintains its upward momentum, the $120,000 level will become a key focus. Market experts foresee strong psychological resistance at this point and significant selling pressure. 

***NOT INVESTMENT ADVICE ***

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