According to The Kobeissi Letter, the Crypto Fear & Greed Index has climbed sharply to 71, marking a 67-point increase in just five weeks and signaling a strong shift towards market greed. With the index now only 4 points away from the 'Extreme Greed' threshold, traders should be vigilant for potential volatility, as historical data often links high greed readings to increased risk of sharp market corrections or rapid price swings (source: The Kobeissi Letter, May 16, 2025). For active traders, this high index level may indicate a short-term overheating in the crypto market, suggesting the need for tighter risk management strategies and close monitoring of key support and resistance zones.

According to The Kobeissi Letter, since February 19th, the S&P 500 has experienced an average daily movement of $600 billion, indicating significant market volatility. In the crypto market, sentiment has rapidly shifted from Extreme Fear to Extreme Greed within just six weeks. This dramatic change in market emotion presents potential opportunities for traders to capitalize on these swings.