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Crypto Sentiment Reverts to Neutral After Brief Return to Greed

A quick sentiment reversal highlights a fragile upswing driven by thin spot volumes.

Overview

  • The Crypto Fear & Greed Index fell 12 points to 49 on Friday after U.S. Senate debate on a market structure bill spurred caution, with planned committee markups postponed.
  • The midweek reading of 61 marked the first move into greed since the October $19 billion liquidation before confidence cooled back to neutral.
  • Bitcoin climbed to about $97,700 during the week and traded near $95,600 on Friday, reflecting a tentative rebound.
  • Glassnode reported the rally triggered the largest short‑liquidation event since October 10 across the top 500 cryptocurrencies.
  • Santiment noted a net drop of 47,244 Bitcoin holders in three days and exchange balances at a seven‑month low near 1.18 million BTC, while daily spot volumes hover around $400 billion, well below mid‑2025 peaks.