Bitcoin Nears $80,000 as Sentiment Index Hits Three-Month High

Bitcoin has climbed toward the $80,000 threshold, sparking the largest single-day increase in the Crypto Fear & Greed Index in over three months. The index rose 14 points to reach 46, marking a significant rebound from the extreme lows seen in February. The current recovery follows a period of intense volatility triggered by the Trump administration's imposition of a 15% global tariff on February 23, which had previously driven Bitcoin down to approximately $63,000 and pushed the sentiment index to an all-time low of 5. While Bitcoin reached nearly $79,400 during a 20-hour window on Wednesday before settling around $77,920, analysts warn of a potential correction. Research from CryptoQuant suggests the rally is primarily fueled by demand in the perpetual futures market, while spot demand continues to contract slowly. On-chain data indicates a shift in ownership, with over 300,000 BTC moving into long-term holder wallets over the past 30 days. Notably, MicroStrategy has reportedly acquired 53,000 BTC within the last month, suggesting that supply is concentrating among institutional 'strong hands' even as retail traders remain cautious. This price action occurs against a backdrop of geopolitical instability, specifically ongoing tensions between the U.S. and Iran regarding the management of the Strait of Hormuz.