In a remarkable turn of events, Bitcoin has once again smashed through the $100,000 barrier, witnessing a significant 12.5% uplift after rebounding from the $90,000 support level on January 13. This resurgence not only highlights Bitcoin's robust momentum but also positively influences the broader cryptocurrency market.

As a direct consequence, we observe a surge in the overall market capitalization, along with considerable movement within the Crypto Fear and Greed Index—now approaching the Extreme Greed territory.

The Crypto Fear and Greed Index serves as a barometer for market emotions, scoring sentiment on a 0 to 100 scale ranging from extreme fear to extreme greed, with neutrality in between. When extreme fear prevails, markets tend to see oversold conditions, frequently leading to buying opportunities. Conversely, overwhelming greed can indicate overbought markets, often presaging potential corrections or crashes, particularly after swift shifts from neutrality to extreme greed.

This week, the cryptocurrency market has observed consistent inflows, fresh data reflects a rise in total market capitalization from an initial $3.14 trillion to $3.57 trillion.

This increase of approximately $430 billion within five days indicates heightened optimism, as Bitcoin and several significant altcoins push towards new milestones. The rapid shift in market sentiment has seen the index transition from neutrality to greed, with extreme greed now within striking distance, hinting at the onset of overbought conditions.

Whether the market maintains a greedy sentiment largely depends on Bitcoin’s sustained position above the $100,000 mark. Maintaining this key support level could help prevent extreme greed from triggering overbought conditions and subsequent market corrections. A stable price above $100,000 would likely recalibrate the Crypto Fear and Greed Index, providing relief from potential crashes driven by unchecked greed.

Presently, Bitcoin remains at $102,320, marking a 1.9% increase over the past 24 hours. The coming days will be telling in gauging whether this upward trajectory can be sustained or if historical trends of extreme greed preemptively leading to crashes will reemerge.