Bitcoin faces 'extreme fear' despite price rally

Bitcoin has recently rallied to trade around $75,600 to $76,000, marking a roughly 6% increase over the past week. Despite this upward momentum, market sentiment remains in the "extreme fear" zone, according to the Crypto Fear and Greed Index. Analysts suggest the rebound is primarily driven by flows and appears fragile, with spot demand showing improvement while options and derivatives markets exhibit caution. This divergence between rising prices and negative sentiment highlights a complex market dynamic, with some observers characterizing the current uptrend as a 'relief without reopening,' indicating a price reset rather than a fundamental shift in the macroeconomic outlook.