Bitcoin Fear & Greed Index Hits Neutral as Selling Pressure Eases

• The index rose 11 points from 40 on Saturday, marking the first neutral reading in over two weeks.

• Bitcoin’s weekend surge to $115,000 reflects reduced fear among investors after prolonged market volatility.

• Selling pressure has declined, with data showing flattened cumulative volume delta and negative funding rates, per Glassnode analysis, as the U.S. Federal Reserve eyes potential rate cuts.

Discover how the Bitcoin Fear and Greed Index turning neutral impacts crypto markets amid Bitcoin’s $115K rally. Explore key insights and what it means for investors today—stay informed on market sentiment shifts.

What is the Bitcoin Fear and Greed Index and Why Has It Turned Neutral?

The Bitcoin Fear and Greed Index is a sentiment indicator that gauges the emotional state of the cryptocurrency market on a scale from 0 to 100, where lower scores indicate fear and higher ones suggest greed. It has recently flipped to neutral at 51 for the first time since mid-October, following a sharp market crash that wiped out billions in leveraged positions. This shift highlights a stabilization in investor confidence as Bitcoin’s price climbed back to approximately $115,000 over the weekend.

How Does the Recent Market Crash Affect the Index?

The index plummeted to a yearly low of 24 in the wake of trade policy announcements on October 10, 2025, which triggered widespread liquidations totaling around $19 billion in crypto positions. According to data from Alternative.me, the index had been in the fear zone, reflecting heightened volatility and risk aversion among traders. Now, with the score climbing over 20 points in a week, it underscores a broader market recovery driven by diminished selling activity.

Analytics from Glassnode further support this trend, noting that aggressive Bitcoin selling has waned. Their analysis points to a flattening of spot and futures cumulative volume delta, suggesting that the peak of negative sentiment has passed. Funding rates, which measure the cost of leveraged positions, have remained below the neutral 0.01% threshold, indicating cautious positioning rather than excessive optimism or pessimism.

Experts in cryptocurrency market dynamics, such as those cited in reports from on-chain data providers, emphasize that such reversals often precede sustained rallies. For instance, a Glassnode representative stated in their recent update, “The subsidence of selling pressure over the last several days signals a potential trend reversal, with participants showing increased caution rather than panic.”

Looking at historical patterns, the index has previously turned neutral during periods of macroeconomic uncertainty, often leading to price stabilization. In this case, the combination of resolved short-term fears and anticipation of U.S. Federal Reserve actions could bolster Bitcoin’s momentum. The Fed’s upcoming meeting on October 29, 2025, is priced in with a high probability of a 0.25% rate cut, as indicated by CME Group’s FedWatch Tool data showing a 96.7% likelihood. Lower interest rates typically support risk assets like cryptocurrencies by making borrowing cheaper and encouraging investment flows.

Frequently Asked Questions

What Caused the Bitcoin Fear and Greed Index to Drop in Mid-October?

The downturn was primarily sparked by announcements of increased tariffs on China on October 10, 2025, leading to a rapid market sell-off and $19 billion in liquidations. The index fell from a greed level of 71 to 24, capturing the widespread fear that ensued as global trade tensions escalated, impacting crypto sentiment globally.

How Might a Federal Reserve Rate Cut Influence the Bitcoin Fear and Greed Index?

A rate cut by the Federal Reserve can ease monetary policy, potentially boosting investor appetite for high-risk assets like Bitcoin. This could push the index toward greed territory by reducing the appeal of traditional safe havens and increasing liquidity in markets, fostering a more optimistic outlook among traders and institutions.

Key Takeaways

• Neutral Sentiment Shift: The Bitcoin Fear and Greed Index at 51 signals the end of prolonged fear, correlating with Bitcoin’s price recovery to $115,000 and reduced liquidation risks.
• Declining Selling Pressure: On-chain metrics from Glassnode show flattened volume delta and subdued funding rates, indicating stabilized market dynamics post-crash.
• Upcoming Fed Decision: With a 96.7% chance of a rate cut on October 29, investors should monitor policy outcomes for potential bullish catalysts in crypto valuations.

Conclusion

The transition of the Bitcoin Fear and Greed Index to neutral represents a pivotal moment in the cryptocurrency market’s recovery from October’s volatility, driven by easing trade concerns and waning selling pressures. As Bitcoin stabilizes near $115,000, factors like the impending Federal Reserve rate decision could further influence market sentiment, offering opportunities for strategic positioning. Investors are encouraged to track these developments closely to navigate the evolving landscape of digital assets with informed confidence.

The Bitcoin Fear & Greed Index has flipped to neutral, leaving “fear” behind for the first time since the mid-October market crash sparked by trade policy announcements.

The Bitcoin Fear & Greed Index has finally clawed its way out of the “fear” zone on Sunday, resolving to neutral for the first time in more than two weeks as the price of Bitcoin surged back to around $115,000 over the weekend.

The Bitcoin Fear & Greed Index, which measures overall market sentiment, is currently sitting in the “neutral” zone with a score of 51 out of 100.  

It’s up 11 points from the fearful score of 40 on Saturday, and also up over 20 points since last week, marking a sharp change in tune over the past few days.       

The current Bitcoin Fear and Greed score. Source: Alternative.me

Trade policy announcements on Oct. 10 had plunged the index from a “greed” score of 71 to a yearly low of 24 as $19 billion of crypto leveraged positions were liquidated. 

“Aggressive” BTC selling is waning

The shift in sentiment comes amid a recent decline in Bitcoin (BTC) selling pressure, according to Bitcoin analytics platform Glassnode.

In an X post on Sunday, Glassnode suggested a trend reversal is in the works, as selling pressure and negative sentiment appear to have already peaked to their extremes.   

“For the first time since the October 10th flush, spot and futures CVD [Cumulative Volume Delta] have flattened, indicating that aggressive selling pressure has subsided over the last several days,” the post reads, adding:

“Funding rates remain below the neutral level of 0.01%, indicating no excessive long positioning or froth. In fact, we can see that funding flipped very negative several times over the last 2 weeks showing that participants lean towards caution.”

Glassnode’s Bitcoin data breakdown. Source: Glassnode

Looking ahead at other potentially bullish indicators, the market is seemingly anticipating another interest rate cut by the US Federal Reserve at its Oct. 29 meeting.

At the time of writing, data from CME Group’s FedWatch tips a 96.7% chance that the Fed will cut rates by 0.25% this week.