The Crypto Fear and Greed Index flipped to “neutral” on Sunday for the first time since October, signalling improving investor sentiment.
CoinMarketCap data showed the index at 40, indicating investors are no longer fearful but remain cautious.
Sentiment had hovered between “fear” and “extreme fear” since the market flash crash on October 10, 2025.
The index hit its lowest level of the year in November at a reading of 10, reflecting extreme fear.
Crypto markets plunged in October after a historic crash ended the bull run.
Bitcoin fell from an all-time high above $125,000 to around $80,000, marking a decline of roughly 35%.
Altcoins recorded steeper losses, with many shedding most of their value overnight.
The total altcoin market capitalisation excluding bitcoin and ether dropped by about 33% in a single day.
Investor sentiment has gradually improved heading into early 2026 despite lingering uncertainty.
Analysts warned that geopolitical tensions and weak retail participation could weigh on the market.
Attention has turned to the United States following its strike on Venezuela over the weekend.
The United States of America has successfully carried out a large-scale strike against Venezuela and its leader, President Nicolas Maduro.
Donald Trump said.
Bitcoin prices remained resilient following the announcement, defying typical reactions seen in risk-on assets.
Market participants said broader financial market reactions may become clearer once US markets reopen.
At the time of reporting, Bitcoin price was $91,800.12.