Haciyev Reşit 
The Fear and Greed Index, which measures investor sentiment in the cryptocurrency market, has risen to a “Neutral” level for the first time since October after a long period. This increase indicates that the previously dominant cautious and hesitant sentiment in the market is giving way to a more balanced and controlled perception. The slight rise in investors’ risk appetite is seen as a sign that the market has become more resilient to sudden fluctuations and that investors are beginning to reassess their expectations for the future. Movements observed in Bitcoin and leading altcoins particularly reflect this recovery in the index.
How the Index Data Reflects Market Sentiment
The Fear and Greed Index moved into the neutral zone today with a score of 49. This level shows that the previously dominant cautious and hesitant sentiment in the market has shifted toward a more balanced and controlled outlook. Historical data from the index also supports the sustainability of this recovery:
- Last week: 30 points (“Fear”) — indicated that investors were still cautious and risk aversion was strong.
- Yesterday: 40 points (close to Neutral) — showed a slight improvement in investor sentiment and early signs of increased risk appetite.
- Last month: 25 points (“Fear”) — reflected a period dominated by fear and caution, with most investors taking conservative steps.
This trend demonstrates that investor sentiment is gradually improving, risk appetite is slowly increasing, and investors are taking more balanced positions. The rise in the index signals not only short-term market movements but also growing mid-term investor confidence and the potential for a more stable trend in the cryptocurrency market.
Bitcoin and Market Reaction
Bitcoin’s price showed an unexpected rise today, gaining approximately 3% intraday to surpass $94,000. This sudden move reflects not only positive technical indicators but also the improvement in investor sentiment. Parallel to the index reaching neutral, market participants’ risk perception began to shift, and investors turned toward a more optimistic outlook. Particularly, the tendency of large investors to take positions and increasing buying volumes reinforce this positive market sentiment. Despite short-term volatility, this points to a higher likelihood of a balanced recovery in the cryptocurrency market.
Annual Perspective: Index Fluctuations
Throughout 2025, the index has shown a volatile pattern:
- May 23, 2025: 76 points (“Greed”)
- November 22, 2025: 10 points (“Extreme Fear”)
Low values indicate excessive fear among investors and relatively low market pricing, while high values signal over-optimism and potential overvaluation. Crypto analysts note that the neutral level of the index indicates market stabilization. It shows that investors’ risk appetite is gradually increasing and that the market is likely to follow a more stable trajectory rather than sudden drops.
“The Fear and Greed Index is a critical indicator for understanding short- and long-term trends in investor psychology. Its rise to neutral shows that the market has reached a more balanced point.”
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