Bitcoin sentiment has moved out of extreme fear over the past ten days, with the Fear & Greed Index rising from the 25-30 range in mid-April to around 50-60 this week, its highest level in three months.

The stronger signal behind that shift is capital flow. Spot Bitcoin ETFs recorded daily net inflows above $400 million in recent sessions, weekly inflows crossed $1 billion, and March became the first positive month for ETF flows since late 2025.

Parallely, CME Bitcoin futures open interest fell to around $8.4 billion, the lowest level in 14 months, showing leverage has reduced while spot demand has strengthened.

Liquidation data shows more than $300 million in short positions cleared across recent sessions, but funding rates remain flat to slightly negative.

That suggests the recovery is not being driven by aggressive leveraged longs, which gives the current move toward $80,000 a more stable base than previous rebounds built on derivatives expansion.

The BIS warning on crypto exchanges functioning more like shadow banks reflects growing attention on where risk is accumulating across digital asset markets.

The main concentration remains in lending activity, yield products, and dominant collateral pools such as stablecoins and staked ETH, where stress can move quickly across protocols when liquidity tightens.

As institutional capital returns, the market is increasingly separating between platforms that can absorb risk through transparent custody and collateral controls, and those still exposed to concentrated liquidity dependencies.

Ryan Lee, Chief Analyst at Bitget Research

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