Crypto News Today: Crypto Fear and Greed Index Flips to ‘Neutral’ for First Time Since October
The sentiment among crypto investors has oscillated between “fear” and “extreme fear” since the market flash crash on October 10, 2025, but the mood appears to be slowly stabilizing.The CoinMarketCap “Crypto Fear and Greed Index” — a widely tracked measure of investor sentiment — flipped to “neutral” on Sunday for the first time since October, signaling that market fear may be subsiding even if bullish conviction remains muted.The Index currently sits at 40, a level indicating that investors are no longer deeply fearful but have yet to return to optimism.In November, the gauge hit its lowest reading of 2025, sinking to 10, which corresponds to “extreme fear,” according to CoinMarketCap data.Bitcoin price retreats from extremes, trading near key levelsThe shift in sentiment comes as the price of Bitcoin stabilizes near $88,000–$92,000, according to recent Binance price data. Current levels are well below the all-time high above $125,000 seen before the October crash but reflect relative resilience compared with the sharp drawdowns that followed market turmoil late last year.At the time of writing, Bitcoin is tracking near the $88,000–$92,000 range, a price band that has served as a psychological support area after the significant volatility in late 2025. Crypto investor sentiment plunged in October amid a historic market sell-off that derailed part of the prior bull run. Bitcoin fell sharply — at one point sliding nearly 35% from just above $125,000 — while many altcoins lost large portions of their value in rapid fashion.Sentiment improving, but macro risks remainThe return to neutral territory on the Fear and Greed Index highlights a gradual shift in market psychology, but analysts caution against reading too much into a single data point. While investors are less fearful than in recent months, the broader crypto investor base is still cautious, and bullish sentiment has not yet taken hold.“Neutral readings can simply reflect indecision,” one market strategist noted, “as participants wait for clearer macro and on-chain signals before committing capital.”Growing geopolitical tensions and continued muted retail participation are likely to weigh on sentiment in the near term, even as short-term indicators improve.Geopolitical spotlight: U.S. strike on VenezuelaAll eyes remain on global news flows after a U.S. strike in Venezuela last weekend, which has dominated headlines and raised questions about potential spillovers into global financial markets.In a televised announcement, President Trump stated that Venezuelan President Nicolás Maduro had been captured and removed from power following the operation.Bitcoin’s price has remained relatively resilient in the immediate aftermath — a behavior that diverges from how many traditional risk-on assets typically react to geopolitical shocks.Market analysts remain divided on the potential impact of the event on crypto prices. Some suggest that the price of Bitcoin could remain largely unaffected, while others argue that correlation with traditional markets — particularly U.S. equities — could lead to volatility once mainstream trading resumes.For now, traders and investors are closely watching both crypto and traditional markets as U.S. exchanges reopen, which may offer further clarity on how sentiment evolves.