Is the crypto bull market back? 3 signals suggest it could be

The crypto market has been bullish since early August, led by Bitcoin [$BTC]. This recovery follows a bear market that persisted from October last year.

Since the start of August, the total crypto market cap has grown from $2.06 trillion to over $2.91 trillion, adding nearly $1 trillion in six weeks.

This scenario raises the question of whether this increase signals the start of a cryptocurrency bull market.

Market sentiment returns to greed

In essence, the Fear & Greed Index has returned to 59 as of writing, indicating a sentiment of greed. The index was at 45 last week, indicating fear, but that sentiment changed after $BTC’s price broke above $85,000.

Notably, the index is not far off from reaching extreme greed levels around 70.

While extreme greed tends to appear near the end of an uptrend, greed also marks the early stages of a bull cycle. The index could remain in this territory until the remaining bears switch sides. This is because there was a bit of profit-taking from Bitcoin holders.

Aside from the market sentiment, there are other factors supporting the potential start of a crypto bull market.

Bitcoin ETF inflows and cost basis

For instance, Spot Bitcoin ETFs saw massive net inflows of $999 million. This became the largest single-day inflow since the 6th of October last year, when the products pulled $1.21 billion in capital.