According to index tracker alternative.me, the Crypto Fear & Greed Index has fallen from a “Greed” reading of 72 to 60 in the 24 hours leading up to Friday. The decline in sentiment comes even as Bitcoin remains relatively stable above the $90,000 level.
On April 23, when Bitcoin had pushed back above $90,000 for the first time since March 6, the Fear & Greed Index reached a two-month high of 72. Since falling below 50 on February 10 after a spell of downward market price trends, it had only crossed the 54 level once.
Index falls with Bitcoin price over $90,000
According to alternative.me charts, the last time the index fell to 60 was on February 4, around the time when US President Donald Trump announced new tariffs, and Bitcoin slipped below $100,000. The current dip in sentiment does not follow a drop in Bitcoin’s spot price.
Joao Wedson, CEO of analytical firm Alphractal, posted on X that April 24 had the most leveraged positions in Bitcoin history. He revealed that $8.41 billion in positions were placed that day, the highest volume ever recorded in 24 hours for the largest coin by market cap.
Around $2.4 billion of those positions were closed, likely due to a mix of long position closures by Market Makers, bear triggers, and liquidation events.
Yesterday marked the highest volume of leveraged positions in Bitcoin's history in a single day, totaling $8.41B USD.
Today, $2.4B USD were closed—likely due to Market Makers closing long positions, bear stop triggers, and liquidations.
This indicates aggressive long positions,… pic.twitter.com/325BMmEpBD
— Joao Wedson (@joao_wedson) April 24, 2025
Wedson cautioned that these leveraged trades, together with low spot trading volumes, show markets are preparing for volatility, unsure of which side it would go.
“Bitcoin now has massive long positions, and this could trigger new waves of liquidations. After the recent price surge and short liquidations, holding longs now could increase your risk,” he argued.
Is the current market rally sustainable?
In a Tuesday market report, 10x Research head Markus Thielen mentioned that Bitcoin’s chart shows a strong technical breakout from a falling wedge pattern, but stablecoin activity, a liquidity source for crypto markets, is low.
“Our stablecoin minting indicator has yet to return to high-activity levels,” Thielen noted. He said that while technicals suggest Bitcoin could climb toward $98,000 to $99,000, the rally may lack the necessary liquidity to sustain an upward momentum unless stablecoin inflows pick up.
Professional trader Chris Criner supported Thiel’s theory, saying the market was due for a short-term correction.
“It has been running hard, so under normal market conditions, a pullback would be expected,” he wrote on X, predicting that Bitcoin could revisit the $88,000–$89,000 range. Criner told followers that a drop could retest the recent lows of $84,000.
The trader also discussed how geopolitical tensions could thwart a sustained market run, especially if Washington and China continue their tariff-for-tariff standoff.
“If they play hardball with the tariffs, then I think the market could freak out, and we head back towards the lows. They literally have our balls in their hand, though I think they know trying to screw Trump is not the best option for either country. It’s the big what-if. Once we hurdle that issue, then we should be clear to run again significantly,” he reckoned.
April US CPI data on investors’ minds
Traders will wait for April’s US Consumer Price Index (CPI), scheduled for release on May 13, before taking any entry or exit positions.
March’s CPI data dropped to 2.4% year-over-year, the lowest since February 2023. Some welcomed the decline, which included a fall in inflation to 2.4%, but others interpreted it as a bearish signal for Bitcoin in the short term.
BlackRock’s iShares Bitcoin Trust (IBIT) still leads the ETF market with year-to-date inflows of $2.7 billion, including $346 million just last week.
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