Bitcoin Fear & Greed Index Hits ‘Greed’ After 3 Months

Generally, You should be aware that for the first time in three months the Bitcoin Fear and Greed Index jumped into the “greed” zone, showing investors are getting more confident. Obviously, This means you are seeing a shift in market sentiment. Usually, Investors are feeling bold and demand is rising. Currently, The index is indicating a score that means greed, so you can expect demand to keep rising.

Bitcoin’s Market Sentiment Turns Optimistic for the First Time Since October

Naturally, The index hit 61 on Jan 16 2026, the highest reading since early Oct 2025 and it felt like the market finally caught a breath. Normally, You would see a mix of emotions in the market, but currently, optimism is prevailing. Probably, This is due to the recent rally in Bitcoin prices. Apparently, The market is reacting to the positive news.

What Does the Shift Mean?

Basically, A score between 55-74 means “greed”, so investors are feeling bold and demand is rising, but that also could mean we’re getting a little too excited. Sometimes, You see investors getting too excited and that can lead to a dip. Usually, It is a good idea to be cautious when the index is in the greed zone. Currently, The index is indicating that investors are feeling greedy.

Why Investors Are Watching Closely

Clearly, Bitcoin rallied near $98,000 after a mix of geopolitical news and a de-escalation comment from Trump, and that 7% jump this week grabbed everyone’s attention. Obviously, You would want to keep an eye on the market when there are big jumps in price. Generally, Investors are watching closely to see what happens next. Probably, The market will react to the news and make adjustments accordingly.

Whales and Shrimps: A Bullish Signal?

Interestingly, Santiment data shows whales (10-10,000 BTC) added over 32,600 BTC since Jan 10, while tiny holders under 0.01 BTC were actually selling – a classic sign of a potential bull run. Normally, You would see whales buying and small holders selling as a sign of a bull run. Usually, This is a good indicator of market sentiment. Currently, The data is indicating a bullish signal.

What’s Next for Bitcoin?

Possibly, If the index climbs to “extreme greed” we might see a short-term dip, but as long as whales keep buying the upside could keep stretching toward $100k-$106k. Generally, You would want to be cautious when the index is in the extreme greed zone. Usually, The market can be unpredictable, so it is good to be prepared. Apparently, The future of Bitcoin is looking bright.