Crypto market sentiment hits ‘greed’ levels: Is another October-style crash coming?

Is the crypto market turning into too bullish too quickly?

Crypto market sentiment evaluation means that this would possibly effectively be the case. In keeping with the Crypto Worry & Greed Index, the market is presently within the “Greed” class, having crossed the 70 threshold.

The chart additionally exhibits {that a} equally excessive degree of greed has occurred proper earlier than the BTC worth’s 30%+ correction within the October 2025 cycle, which is a big drop to be careful for.

Moreover, the general crypto market cap has risen by over 22% from the earlier week. The weekly RSI indicator exhibits an especially overbought situation. Remarkably, in line with the chart beneath, in the course of the October 2025 cycle, the RSI indicator didn’t attain such a degree.

Briefly, the scenario available in the market is trying very very similar to the setup for the October breakdown. As well as, there’s now a transparent danger of profit-taking because the overbought RSI additionally seems in crypto market knowledge.

As previously, an identical setup has offered the situations wanted for profit-taking to happen. On the time of writing, there are already a number of large-cap cryptocurrencies in destructive territory. However, if the eye is shifted from each day to weekly time frames, the scenario adjustments significantly. 

Crypto market sentiment hasn’t hit peak greed but

A major distinction stands out, which explains why the crypto market sentiment is poised to evolve.

Crucially, institutional demand drives this divergence. In keeping with SoSoValue, it’s presently on the degree of over $1 billion flowing into Spot Bitcoin ETFs final week, alongside BTC’s 21% rally.

Nevertheless, in the course of the October cycle, weekly ETF inflows topped $3 billion. Thus, whereas institutional demand is certainly on the rise, it’s removed from the degrees of the aforementioned rally, leaving room for additional development.

In the meantime, this growth is especially noteworthy for the U.S. buyers. The Bitcoin Coinbase Premium Index peaked at 0.18, suggesting that U.S. consumers have been accumulating Bitcoin at a speedy tempo earlier than the crypto market sentiment turned to greed.

Notably, this issue seems to be absent this time round.

In different phrases, the U.S. investor demand didn’t take part on the extent of the earlier waves of shopping for, which makes means for increased spot shopping for to the subsequent degree.

So, the bearish situation with the crypto market sentiment on the degree of 75 just isn’t totally correct, as there’s nonetheless the potential for the rise of the demand to the extent of “excessive” greed.

Remaining Abstract

• Crypto market sentiment is getting overheated with the Worry & Greed Index above 70 and RSI within the overbought zone, elevating pullback dangers.
• However ETF and U.S. investor demand are nonetheless beneath October ranges, leaving room for extra shopping for and stronger sentiment.