After two weeks of uncertainty and sell-offs, confidence is slowly returning to the cryptocurrency market. The Crypto Fear & Greed Index, which tracks investor sentiment, moved from the fear zone to neutral on Sunday, reaching a score of 51 out of 100 – signaling calm and a potential trend reversal.

This positive shift came just days after Bitcoin climbed back above $115,000, marking a strong recovery after panic struck the market two weeks ago. The sell-off was triggered by U.S. President Donald Trump’s announcement of new tariffs on Chinese goods, causing the index to plunge from 71 (greed) to just 24 – the lowest point of the year. The result was the liquidation of leveraged positions worth over $19 billion, leading to heavy losses for risk-taking investors.

Selling pressure eases, sentiment improves

Analytics firm Glassnode confirmed signs of recovery, noting that aggressive Bitcoin selling is slowing. In a Sunday post on X, it reported the first alignment of the Cumulative Volume Delta (CVD) between spot and futures markets since the October drop, indicating a sharp decline in selling pressure.

“We appear to be witnessing a turning point. Negative sentiment and selling pressure seem to have bottomed out,” Glassnode analysts stated.

All eyes on the Fed: Another rate cut ahead?

Alongside stabilization in the crypto market, investors are watching the potential catalyst of an upcoming U.S. interest rate cut. According to CME Group’s FedWatch tool, the probability of a 0.25% reduction at the October 29 meeting exceeds 96%.

Lower interest rates typically increase the appeal of riskier assets – including cryptocurrencies. If the Fed follows through, it could strengthen the current positive trend and further fuel growth in Bitcoin and other digital assets.

Sources:

https://cointelegraph.com/news/bitcoin-fear-and-greed-out-of-fear-first-time-since-crypto-crash