The Fear and Greed Index currently shows that the cryptocurrency investor sentiment is in a phase of 'greed', driving Bitcoin and Ethereum prices up despite short-term overbought signals.
The bullish market sentiment of Bitcoin and Ethereum remains strong, with the Fear & Greed Index maintaining high levels that signal the firm confidence of investors, although the risk of short-term corrections still exists.
MAIN CONTENT
Greed sentiment continues to dominate, driving Bitcoin and Ethereum prices up despite being in the overbought zone.
A high Fear & Greed Index is a sign of caution, having often predicted short-term price corrections in history.
Bitcoin still plays a decisive role in the trend, with its market dominance currently exceeding 60.8%.
What does it mean that the current cryptocurrency market is in a state of 'greed'?
The Fear & Greed Index indicates that the cryptocurrency market is in a phase of 'greed', as investors demonstrate optimism and aggressively buy in, despite short-term risks.
When this index reaches 70 (extreme greed), investor confidence becomes evident, often leading to strong price increases due to increased FOMO (fear of missing out) capital flows. However, at the time of the survey, the index has slightly decreased to 62, but it still firmly lies within the Greed zone according to the standards of this tool. This reinforces the active, positive state and high growth expectations of the community, but also carries the risk of a reversal if sentiment changes suddenly.
'And they once said the cryptocurrency market was dead. This is just the beginning stage – compared to the development trajectory of traditional markets, the growth potential is still very large. Remember when a trillion-dollar market cap seemed unattainable? Now we are at four trillion dollars and the Fear & Greed Index is only at 62.'
Source: X user @agentic_t, June 2025
What do the latest developments of the Fear & Greed Index reflect about market sentiment?
Although the Fear & Greed Index has cooled from 70 to 62, it still reflects strong investor sentiment, meaning the upward trend continues to be maintained.
According to data from CoinMarketCap, a 2.38% increase in total market capitalization to $4.05 trillion (at the time of the survey) has strengthened the confidence of professional investors. Bitcoin grew 3.33% to $121,706 and Ethereum increased 2.02%, reaching $4,271 in a day, indicating strong buying power. Market experts like Santiment also noted that investor behavior continues to closely follow sentiment indicators to adjust risk management strategies accordingly.
'The Fear-Greed Index is at a reasonable level, indicating that there is much room for price increases ahead.'
Quote: Sebastian Diaconu, market expert, X user, June 2025
What does the history of the Fear & Greed Index show about the likelihood of price corrections?
According to past developments, periods when the Fear & Greed Index rises sharply often create a precursor to price corrections or sideways trends due to investors taking profits and avoiding high valuation risks.
History has recorded many instances where this index spiked, leading to strong volatility, when FOMO sentiment dominated and 'hot' money tended to withdraw from the market after a significant pump. Specifically, on May 23, 2025, the index rose to 78 (extreme greed), at which point Bitcoin approached $111,800, but then a correction appeared when profit-taking capital dominated. However, not every spike in the index leads to an immediate price drop — there are cycles where exuberance sentiment lasts long before the market makes a clear adjustment.
'The Fear & Greed Index is a great warning tool, but it still needs to be combined with momentum analysis and trend strength to make reasonable investment decisions.'
Source: Santiment report, June 2025
What is the RSI indicator of Bitcoin, Ethereum, and the likelihood of short-term corrections?
According to Santiment, the RSI of both Bitcoin and Ethereum slightly decreased after hitting peaks in the overbought zone, suggesting that short-term correction signals may occur.
When the RSI (Relative Strength Index) exceeds 70, it warns that the market is entering an overbought phase, with increasing reversal risks. However, demand remains stable, so the likelihood of a correction depends heavily on new capital flows and community sentiment. On-chain data shows that short corrections often occur when the RSI drops to the 60–65 range, but long-term trends are only affected when combined with a strong directional shift in the Fear & Greed Index.
Source: Santiment
What decisive role does Bitcoin play in overall sentiment?
Bitcoin remains the dominant cryptocurrency, accounting for over 60.8% of total market capitalization, acting as a 'pillar' to uphold overall bullish sentiment.
When the Bitcoin dominance ratio is high, investors choose to take refuge in liquid assets that have the potential for stable profits. Especially during periods of intense volatility, capital flow increasingly prioritizes Bitcoin, thus maintaining strong upward waves and increasing FOMO sentiment for other altcoins. If this state continues, the market's 'greed' phase will be further reinforced, and the likelihood of a correction will be delayed.
'Bitcoin is not only the largest digital currency but also a 'measure of health' for the entire cryptocurrency industry, especially during periods of strong volatility.'
CoinTelegraph Magazine, Q2 2025 Trend Report
What impact do individual investors and the community have on market sentiment?
Recent community opinions suggest that the 'exuberance' state may persist as long as the flow of capital and the influence of large users continue to stabilize in the cryptocurrency market.
On X platform, influential individuals, such as @agentic_t, have emphasized the long-term growth roadmap of the cryptocurrency market, with much room for growth, while also noting that Bitcoin has reached a market cap of $4 trillion, with sustainable growth despite the prevailing 'greed' sentiment. Additionally, Sebastian Diaconu pointed out that although the Fear & Greed Index is at a high level, the 'Altcoin Season' that many hope for has not yet occurred, meaning that capital flows are still primarily concentrated in large-cap coins like Bitcoin, Ethereum, and XRP.
Does a high greed index always lead to quick price corrections?
A high Fear & Greed Index does not always lead to an immediate price correction; in fact, the market has recorded periods of 'extreme greed' lasting before a clear price reversal occurs.
AMBCrypto's report notes that during the time the index climbed to 78 (23/5/2025), Bitcoin continuously conquered new price levels of $111,800, but it was only after several consecutive increases that the risk of correction appeared. This shows that strong buying power can continue to push prices up, even when traditional indicators warn of risk zones.
'A consistently high Fear & Greed Index can add further growth momentum for the leading coin, as long as there hasn't been a psychological shock or widespread profit-taking signals.'
AMBCrypto Market Analysis, May 2025
Why has the phenomenon of 'Altcoin Season' not yet occurred despite the strong market increase?
Although the overall market capitalization is growing well, a widespread 'Altcoin season' has not really opened up, with most capital flows concentrated in Bitcoin, Ethereum, XRP, and some large coins.
According to Sebastian Diaconu, the 'Altcoin season' has not appeared as many investors still prioritize high-liquidity assets and are not yet ready to allocate capital to smaller, speculative altcoins. This reality leads to investors expecting a shift in capital flow to wait for clearer signs of uniform growth across all altcoins.
The 'Altcoin season' that everyone is waiting for has not yet occurred. Right now, the market mainly records growth in Ethereum, XRP, and some other large coins.
Sebastian Diaconu, investor at X, June 2025
Comparison of prominent 'greed' phases that have occurred in the cryptocurrency market
Many spikes in the Fear & Greed Index in history have brought impressive bullish waves, but they are also often precursors to strong corrections or short-term sideways movements.
Fear & Greed Index Bitcoin Price (USD) Next Developments 20/2/2021 95 (extreme greed) 56,000 Then sharply dropped to around 44,000 in 2 weeks 8/11/2021 84 (extreme greed) 68,700 (ATH) Price corrected down 20% after 10 days 23/5/2025 78 (extreme greed) 111,800 Slight correction, sideways before rising again 6/2025 (currently) 62–70 (greed) 121,706 (latest) No strong correction recorded, upward momentum maintained
The table above proves that phases of 'greed' have led to significant short-term profits, but investors need to be cautious of sudden reversal trends when capital begins to take profits widely or negative information emerges.
What is the role of on-chain data and quantitative indicators in assessing market sentiment?
Using on-chain data (real transactions on the Blockchain) combined with quantitative indicators such as RSI, trading volume, and volatility helps professional investors determine reasonable entry/exit points and manage risks effectively.
Many experts, such as Santiment, suggest a strategy of not relying solely on sentiment indicators but also analyzing on-chain performance, whale wallet movements, mining activity, and capital flows in and out of exchanges to provide a multi-dimensional view of market heat/cold. This is an experience that many institutional investors apply to increase the win rate and reduce the risk of being 'stop-loss hunted' during strong market fluctuations.
What factors could quickly change market sentiment in the near future?
Cryptocurrency market sentiment can quickly reverse due to the influence of macroeconomic information, legal regulations, whale movements, and strong price volatility on Bitcoin or Ethereum.
Factors such as the FED's interest rate policy, new regulations on exchange management, hacking information, rug pulls, or Bitcoin halving events can turn 'greed' into 'fear' in just a few trading sessions. Investors need to maintain discipline, keep updated through multiple channels, and absolutely avoid 'all in' when sentiment indicators are at extreme levels.
What are the prospects and forecasts for the cryptocurrency market trend in the near future?
Although the risk of short-term price corrections appears alongside technical indicators warning of overbought zones, the sustainable upward trend is still reinforced by strong participation of new capital, community optimism, and Bitcoin's leading role.
Glassnode's research (2024) indicates that major cycles of the cryptocurrency market are often led by Bitcoin and large-cap coins. CoinMarketCap data from June 2025 also emphasizes: market liquidity is currently increasing significantly compared to the average of the previous year, while the price volatility of Bitcoin and Ethereum is higher than the previous stability but not enough to warn of a prolonged distribution phase. If the Fear & Greed Index remains above 60, combined with positive on-chain data, the market could sustain a growth phase for a few more weeks before entering a larger correction.
'Sentiment indicators like Fear & Greed need to be placed in the overall context because the cryptocurrency market is highly volatile, often extending extreme states longer than traditional markets.'
Glassnode Weekly Report, June 2024
Frequently asked questions
What is the Fear & Greed Index?
It is an index that measures the emotions of cryptocurrency investors from extreme fear to extreme greed, based on price momentum, volume, social media, and on-chain data.
What does a Fear & Greed Index above 60 reflect?
An index above 60 indicates that market sentiment is euphoric, with strong buying capital flows, prices are easy to rise but also carry short-term correction risks due to profit-taking.
Why does a high RSI warn of risks?
When the RSI is above 70, the market shows signs of being overbought, making it likely for price corrections or sideways movements to occur after a series of continuous strong increases, especially with Bitcoin and Ethereum.
The Altcoin Season has not occurred, what does this mean?
Capital flows are still mainly invested in large coins like Bitcoin and Ethereum. The Altcoin season only occurs when many smaller coins simultaneously experience strong growth and capital flows are distributed more evenly.
How does high Bitcoin dominance affect the market?
High Bitcoin dominance makes the overall market stable, creating an optimistic sentiment about capital flow, but limits the spread of the increase evenly across the Altcoin ecosystem.
Is the Fear & Greed Index completely reliable?
This index is useful for capturing general sentiment, but it is necessary to combine technical analyses, on-chain indicators, and macroeconomic news to make effective trading decisions.
When should one be cautious about signals of extreme greed in the market?
Caution should be exercised when the Fear & Greed Index is above 70, RSI is high, and volume spikes while macroeconomic and legal news have not significantly changed or distribution signals have appeared.
Source: https://tintucbitcoin.com/bitcoin-cham-dinh-chi-so-tham-lam-70/
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