Bitcoin Explodes, Greed Too… And that Might be a Problem

Two and a half months stuck under 65,000 dollars, bitcoin jumps 15,000 dollars to flirt with 80,000 dollars, its highest level in three months. While the crowd applauds and greed resurfaces, Warren Buffett furrows his brow.

In brief

• Bitcoin’s Fear & Greed Index Over Time climbs to 71-72, a greed level never reached during the rallies in January or May.
• Strategy, Coinbase, and Robinhood soar alongside the Bitcoin rally, increasing risk in case of reversal.
• Even critics of the Saylor model wonder if this is a real floor or a new greed trap.

Bitcoin: Greed Returns Faster than Expected

Recent monetary changes announced by the US Treasury have sparked a fire! Bitcoin exploded from 65,000 to almost 80,000 dollars, reaching a three-month peak. The indicator that deserves attention is not the price, but rather the Fear & Greed Index Over Time which shows 71, then 72 the next day. A greed zone neither the January nor May rally had managed to reach.

This is only the second time since the start of the year that the index switches into “greed”. Warren Buffett has a formula every crypto investor should now know by heart: be fearful when others are greedy, be greedy when others are fearful. Greed returns… Fast… Perhaps too fast for a Bitcoin market that was just waking from a month and a half of sleep.

The Bitcoin Rally Spills Over to Wall Street

The movement does not stop at Bitcoin (BTC). Crypto-related stocks also soared in US pre-market:

• Strategy jumps 9.3%;
• Coinbase climbs 6.2%;
• Robinhood adds 5.1%;
• Hyperliquid follows with 3.2%;
• Bitcoin jumps 6.6% in the same session, crossing 77,800 dollars;
• Ethereum edges up 2.7%.

Investors thus seem to anticipate a US regulatory environment finally favorable to crypto. Except a rally that simultaneously affects an asset, ETFs, brokers, and treasury companies is no isolated or cautious move… It’s a wave, and waves also recede just as quickly.

$80,000 for BTC: Solid Floor or Greed Trap?

Even crypto skeptics like analyst Niko Jilch wonder. Bitcoin jumped 27%, is this the final floor or just a new illusion? In any case, a macroeconomic turning point, signals on the yield curve, and whale movements need to be analyzed. According to Jilch, staying on the sidelines right now is the greatest risk.

In other words, neither blind euphoria nor systematic mistrust is enough to correctly read the bitcoin market at this precise moment. And that is exactly the problem with a Fear & Greed Index that climbs so fast. It never says whether the party just started or is already coming to an end.

Bitcoin (BTC) is currently flirting with $80,000, and investor greed has returned to levels not seen since last year’s worst crash. A rally that has spilled over to listed stocks, transforming a simple price movement into a systemic phenomenon. In your opinion, should caution apply, or does the market still have room to grow?