FINALLY ESCAPING FEAR: Cryptocurrency Sentiment Returns to Neutral

FINALLY ESCAPING FEAR: Cryptocurrency Sentiment Returns to Neutral

After weeks of uncertainty and declines, the mood in the cryptocurrency market seems to be slowly changing. The Fear and Greed Index, which reflects the emotional state of investors, has moved into neutral territory for the first time since mid-October, when it took a sharp plunge due to Trump’s tariffs on China. And the best part? Confidence is slowly returning.

The latest data shows that the index, which measures the overall sentiment in the cryptocurrency market, is currently at a score of 51 out of 100. This means that the market is now in a state of balance between fear and greed. This is an 11-point increase from Saturday’s score of 40, signaling a significant change in investor sentiment in recent days.

Things have improved significantly since October, when Trump’s tariff announcements brought the index to a one-year low of 24. At the time, the market experienced a strong capital outflow and cryptocurrencies, including Bitcoin, fell sharply. Now, however, we see that aggressive selling pressure has subsided – despite Bitcoin’s sharp return to around $115,000 over the weekend.

Analytics platform Glassnode is noting that there are changes in selling sentiment. “Spot and futures volume deltas (CVDs) have flattened for the first time since October 10, suggesting that selling pressure is no longer driving the market as strongly as before,” it said in a report. In addition, funding rates remain below the neutral level of 0.01%, indicating that speculators are not taking extreme long positions in the market and are being cautious.

Expectations around US interest rates are also an important factor. Data from CME Group’s FedWatch suggests that there is a 96.7% probability of a quarter-point rate cut this week. This could support further growth of cryptocurrencies, especially Bitcoin, which often acts as an “insurance” against inflation and dollar fluctuations.

What does this development bring us? It seems that the cryptocurrency market is starting to stabilize after a period of uncertainty. Investors are starting to trust again and are no longer so afraid. If the situation continues to develop favorably, we can look forward to further growth impulses that could push cryptocurrency prices to higher levels.

Stay tuned with us - the market situation is still dynamic and every day brings new opportunities and challenges. Confidence is returning, and with it the chance for another successful turnaround in the cryptocurrency economy.

*This is not an investment recommendation.

The Coingarage Team