Bitcoin’s price went on a tear in the past few days, surging to its highest level since mid-May of just under $80,000 after being stuck below $65,000 for weeks and weeks.

Naturally, this has changed the overall market sentiment, with on-chain data showing that investor greed is back to levels last seen right around the October 10 massacre.

Greed Is Back

A lot can change in the cryptocurrency markets in days. Bitcoin was struggling below $65,000 until Wednesday, and there were no clear indications of a potential breakout, especially in the magnitude of what occurred. After all, each attempt was halted before that, and it spent the last month and a half trading sideways between $62,000 and $65,000.

However, then came the monetary changes in the US announced by the Treasury Department, and investors went all in. Bitcoin reacted with an immediate surge that drove it higher by $15,000 in approximately 48 hours to a three-month peak of almost $80,000.

Such explosive moves tend to shift the overall market sentiment. This is particularly evident in the Fear and Greed Index, a metric used to determine the current feelings toward the market by observing several factors, including volatility, market momentum, trading volume, social media comments, and dominance.

The final results range from 0 (extreme fear) to 100 (extreme greed). Given the overall market slumber that reigned for months and BTC’s struggles below $65,000, the index had remained in fear or extreme fear territory ever since the May run to $83,000 and the subsequent violent rejection.

However, it all changed following the latest pump, and greed is back on the map, with the current reading showing 71 (today) and 72 (yesterday). In fact, this is just the second occasion since the start of the year that greed has dominated, and it’s the highest score since last October.

First Warning Sign?

Remember Warren Buffett’s immortal investment advice – be greedy when others are fearful, and be fearful when others are greedy. If that’s to be believed, and he is someone every investor should pay attention to, the rapid increase in this metric could signal trouble ahead.

As mentioned above, the last time there was so much greed in the market was in October 2025. More precisely, October 10, 2025. If by any chance you don’t remember back then, BTC, alongside the rest of the market, experienced one of its worst calamities in history. Prices unraveled by double digits, while the liquidations topped $19 billion in less than 24 hours.

As such, the current spike could be the first warning sign of a potential trend reversal. On the plus side, at least the index is not in ‘extreme greed’ territory.

Source: CryptoPotato