The Crypto Fear & Greed Index climbed to 65 on Thursday, keeping market sentiment firmly in “Greed” territory despite cooling from stronger readings earlier in the week. The indicator rose from 63 a day earlier but remains below the 71 recorded last week, according to Alternative.me’s Crypto Fear & Greed Index.
The latest reading marks a substantial recovery from the previous month, when the index fell as low as 24, a level classified as “Extreme Fear.” Sentiment has improved alongside Bitcoin trading near $78,000, although the index remains six points below its level seven days ago and below a recent high of 74.
Bitcoin ETF Flows Support Improving Sentiment
The steady “Greed” reading comes as capital flows into U.S. spot Bitcoin exchange-traded funds remain volatile. The products recorded approximately $101 million in net inflows on Wednesday after suffering $236 million in net outflows during the previous session. The reversal suggests investor demand remains active even as daily ETF flows continue to fluctuate.
Combined assets under management for the spot Bitcoin ETF market stand at approximately $97.22 billion. That capital base gives institutional investment products a significant role in shaping Bitcoin demand, although individual daily inflows and outflows can vary sharply with changing market conditions.
On-chain observations also point to redistribution between different categories of Bitcoin holders. Mid-sized whale addresses reportedly sold approximately 50,000 BTC since June, while larger entities, including institutional custodians and ETFs, accumulated roughly 59,000 BTC over the same period. The figures suggest that Bitcoin supply has shifted toward larger holders rather than simply leaving the market.
Those movements should not necessarily be interpreted as a single coordinated institutional strategy. Changes in wallet balances can reflect custody transfers, ETF-related activity and other market operations, meaning address-level accumulation alone does not establish the motives behind the transactions.
Broader Crypto Momentum Remains Mixed
Outside Bitcoin, broader market indicators show a less decisive picture. Stablecoin capitalization remained approximately unchanged at $289.9 billion, while decentralized finance market capitalization edged 0.1% higher to $74.2 billion. The relatively muted changes suggest that improving sentiment has not translated into uniform capital expansion across the crypto market.
Bitcoin dominance stands at approximately 57.6%, while Ethereum and several altcoins have experienced more volatile or slightly negative price performance over the same period. The divergence indicates that the current “Greed” environment remains weighted toward Bitcoin rather than reflecting an equally strong rally across digital assets.
The Fear & Greed Index therefore points to optimism without signaling the extreme enthusiasm associated with higher readings. A score of 65 shows that risk appetite has recovered substantially from last month’s extreme fear, but recent declines from the 70s suggest traders have become somewhat more cautious.