The Crypto Fear and Greed Index hit 50 on Tuesday, measuring “neutral” for the first time since Jan. 17. This shift ended a 108-day stretch dominated by negative sentiment. The index gauges market sentiment using volatility, momentum, trading volume, and social signals. A score below 25 signals “extreme fear” or risk aversion, while 26–49 reflects cautious positioning or “fear,” with higher readings indicating improving investor confidence.
Crypto Fear and Greed Index. Source: Alternative.me
The index’s move to 50 marks its first neutral score since mid-January and follows a steady recovery in the total crypto market capitalization, which rose 5.45% in May. Since March, the market has expanded by 16.51%, climbing to $2.66 trillion from $2.28 trillion.
TOTAL market cap on the one-month chart. Source: Cointelegraph/TradingView
The positive shift in sentiment aligns with Bitcoin’s attempt to stabilize above the $81,000 level. Crypto analyst Darkfost noted that BTC sentiment is turning more constructive as the price tests higher levels. The analyst added that a separate sentiment index, ranging from -100 to +100, has also edged into the greed zone. This indicates that investor confidence is improving, with a growing preference to hold BTC rather than exiting positions.
Bitcoin unified sentiment index. Source: CryptoQuant
January showed a similar shift in sentiment before the momentum faded. Darkfost pointed to the current phase as a potential pivot, with investor behavior shaping the next move.
Related: Bitcoin ‘supercycle’ or a bear market rally? BTC breaking $81K has traders at odds
Stablecoin outflows may stall momentum
Binance stablecoin netflows have recorded a cumulative outflow of $11.8 billion since April 25. This metric tracks the movement of stablecoins into and out of the exchange and is often used as a proxy for available buying power.
Positive net flows signal capital entering the exchanges, often associated with accumulation. A negative net flow indicates capital leaving, which can reduce liquidity for spot crypto purchases.
Binance stablecoin netflows. Source: CryptoQuant
Recent data shows a…
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