The Bitcoin Fear & Greed Index has moved out of the "fear" zone, reaching a neutral score for the first time in over two weeks. This shift in sentiment coincides with Bitcoin's price surge back to approximately $115,000 over the weekend.
Currently, the Bitcoin Fear & Greed Index, which gauges overall market sentiment, sits in the "neutral" zone with a score of 51 out of 100. This represents an 11-point increase from Saturday's fearful score of 40 and a rise of over 20 points from the previous week, indicating a significant change in market mood.
The market experienced a downturn following an announcement of China tariffs by Donald Trump on October 10. This event caused the index to drop from a "greed" score of 71 to a yearly low of 24, resulting in the liquidation of $19 billion in crypto leveraged positions.
Selling Pressure Declines
The improvement in market sentiment is attributed to a recent decrease in Bitcoin (BTC) selling pressure, according to insights from Bitcoin analytics platform Glassnode.
In an X post on Sunday, Glassnode suggested that a trend reversal might be underway, as selling pressure and negative sentiment appear to have reached their extremes.
"For the first time since the October 10th flush, spot and futures CVD [Cumulative Volume Delta] have flattened, indicating that aggressive selling pressure has subsided over the last several days," the post stated. It further added:
"Funding rates remain below the neutral level of 0.01%, indicating no excessive long positioning or froth. In fact, we can see that funding flipped very negative several times over the last 2 weeks showing that participants lean towards caution."
Anticipation of Federal Reserve Rate Cut
Further contributing to potential bullish indicators, the market is anticipating another interest rate cut by the US Federal Reserve at its upcoming meeting on October 29.
Data from CME Group's FedWatch tool indicates a 96.7% probability that the Fed will implement a 0.25% rate cut this week.