Crypto Sentiment Shifts to Neutral as Markets React Positively
The Crypto Fear and Greed index has surged 17 points, hitting 49 on March 20. This move takes the index from “Fear” to “Neutral” territory. The index, created by Option, measures investor sentiment using market momentum, volatility, Bitcoin dominance, and social media trends.
This shift to a balanced view suggests investors are no longer overly fearful or greedy. The change in sentiment follows the Federal Reserve’s decision on March 19 to keep interest rates at 4.25%–4.50%. The Fed is pausing rate cuts due to economic uncertainty.
Fed Chair Jerome Powell noted that inflation is still high. He warned that Trump’s tariffs could make it harder to control rising prices. The Fed now expects 1.7% GDP growth, down from 2.1% in December.
After the Fed’s announcement, major stock indices and crypto markets saw gains. bitcoin rose 3% to $85,786, while Ethereum gained 4% to $2,022. Solana climbed 6% to $133. The total crypto market cap is now $2.91 trillion, up 2% in 24 hours.
- Bitcoin ETFs saw $483 million in weekly inflows.
- Solana ETFs are set to launch on March 20.
These developments signal growing institutional interest in digital assets. Despite the Fed’s stable stance, Powell noted that consumer spending is slowing. Investors are watching inflation trends and tariff effects as the market navigates a volatile habitat.
