Bitcoin Holds Above $65K as Investor Sentiment Remains Cautious
Bitcoin's recent recovery above $65,000 has not convinced investors that the correction has ended. Despite the rebound from its late-June lows, sentiment indicators have deteriorated, suggesting a disconnect between improving prices and weakening market confidence.
The Crypto Fear & Greed Index has slipped to the 20s, indicating that investors remain hesitant to chase higher prices after Bitcoin's sharp decline from its October 2025 record above $124,000. Historically, sentiment often lags price action following major corrections, as traders wait for stronger confirmation before rebuilding positions.
One reason for the cautious mood has been the recent reversal in institutional fund flows. US spot Bitcoin exchange-traded funds recorded significant outflows late last week, led by BlackRock's iShares Bitcoin Trust. Macroeconomic developments have also contributed to weaker sentiment, with investors continuing to monitor the Federal Reserve's interest-rate outlook and geopolitical tensions.