Bitcoin fear and greed index hits 74 as BTC surges past $120K

Bitcoin (BTC) stunned markets over the weekend, skyrocketing past $120,000 for the first time as institutional demand and macroeconomic optimism sent the Bitcoin fear and greed index soaring to 74 – deep into “greed” territory.

The surge comes amid unprecedented spot Bitcoin ETF inflows, a weakening U.S. dollar, and growing anticipation of Federal Reserve rate cuts, setting the stage for what some analysts believe could be the next major bull run.

“The market is displaying classic FOMO behavior,” said Marcus Thielen, head of research at CryptoQuant. “When the Bitcoin fear and greed index stays this high for extended periods, we often see a blow-off top before a correction.”

ETF inflows smash records as institutional FOMO kicks in

The rally gained momentum after spot Bitcoin ETFs recorded their largest single-day inflow ever – a staggering $1.18 billion on July 10, led by BlackRock’s IBIT and Fidelity’s FBTC. Over the past week, total inflows exceeded $2.7 billion, reinforcing Bitcoin’s legitimacy among traditional investors.

“This isn’t just retail speculation anymore,” noted James Butterfill, investment strategist at CoinShares. “Institutions are now the dominant force driving Bitcoin’s price action, and their appetite shows no signs of slowing down.”

The Bitcoin fear and greed index, which measures market sentiment, has remained in “greed” or “extreme greed” for most of July, mirroring the intensity of the 2021 bull run.

Macroeconomic tailwinds: Rate cuts and a struggling dollar

Bitcoin’s surge coincides with growing expectations of a Federal Reserve rate cut in September (currently priced at 63% probability) and a U.S. dollar index (DXY) that has fallen nearly 10% this year, its worst first-half performance since the 1970s.

“Investors are fleeing fiat debasement,” explained Lyn Alden, macroeconomist and founder of Lyn Alden Investment Strategy. “Bitcoin’s appeal as ‘digital gold’ strengthens when central banks lose credibility, and right now, the dollar is under severe pressure.”

The Bitcoin fear and greed index has historically peaked during such macroeconomic uncertainty, and current conditions suggest the rally could have further room to run.

Bitcoin Hyper ($HYPER): A Layer 2 solution riding the bull wave

As Bitcoin scales new heights, developers are racing to solve its scalability limitations. Enter Bitcoin Hyper, a new Layer 2 solution built on the Solana Virtual Machine (SVM), promising faster transactions and DeFi integration for the Bitcoin network.

“Bitcoin Hyper could be a game-changer,” said pseudonymous developer “0xSatoshi” in a Discord AMA. “By bringing smart contract functionality to Bitcoin, we’re unlocking the next phase of adoption.”

Key features of Bitcoin Hyper include:

• 320% APY staking rewards during its ongoing presale

• Native support for Bitcoin-based meme coins and dApps

• Near-instant transactions via SVM integration

With the Bitcoin fear and greed index fueling retail interest, projects like Bitcoin Hyper stand to benefit from the bullish sentiment.

Will greed turn to fear? Historical parallels raise caution

While the current rally excites investors, the Bitcoin fear and greed index at 74 signals overheating. Past instances where the index exceeded 85 (like November 2024’s 88 reading) often preceded sharp pullbacks.

“Markets are cyclical,” warned veteran trader Peter Brandt. “When the Bitcoin fear and greed index hits extreme levels, it’s time to watch for exhaustion.”

For now, the momentum favors bulls – but as history shows, euphoria can reverse quickly.