Bitcoin shifts from 'fear' to 'neutral'... signals of market sentiment recovery

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Bitcoin [Photo: Reve AI] Bitcoin [Photo: Reve AI]

Bitcoin's Fear and Greed Index has shifted from 'Fear' to 'Neutral', raising investors' expectations.

According to blockchain media reports on the 27th ( local time ), investor sentiment improved as Bitcoin prices rebounded to around $115,000 over the weekend. The index currently stands at 42 out of 100 points.

Just two weeks ago, the index plummeted from 71 points to a yearly low of 24 points following U.S. President Donald Trump's announcement of tariffs on China. At that time, the market was gripped by extreme fear as $19 billion worth of leveraged cryptocurrency positions were liquidated. However, market sentiment is rapidly changing as the selling pressure on Bitcoin has recently decreased. An on-chain data analytics firm stated, “For the first time since October 10, spot and futures trading volumes have flattened, indicating the disappearance of aggressive selling pressure.”

Additionally, expectations of interest rate cuts by the Federal Reserve (Fed) are fueling investor sentiment. According to CME Group's FedWatch data, the market predicts a 96.7% chance that the Fed will implement a 0.25 percentage point rate cut on October 29.

It remains to be seen whether this sentiment recovery will be a short-term rebound or signal the beginning of a full-fledged upward trend. Some analysts suggest that if global liquidity eases and institutional funds re-enter the market, Bitcoin could potentially break through the $120,000 mark.

BTC-1.77%
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