Crypto confidence rebounds after a sharp October downturn driven by tariff fears
After more than two weeks of investor anxiety, Bitcoin (BTC) has finally escaped the “fear” zone. The Crypto Fear & Greed Index, a key measure of market sentiment, has shifted to neutral — signaling a potential recovery in confidence across the broader crypto market. This change follows a weekend rebound that pushed Bitcoin prices back above $115,000, easing concerns triggered by early October volatility.
Market Sentiment Stabilizes
According to data from Alternative.me, the Crypto Fear & Greed Index reached a neutral score of 51, up from 40 just a day earlier and more than 20 points higher than last week’s low. The sharp recovery reflects growing optimism that the worst of the recent downturn may be over.
The index had plunged on Oct. 10 after former U.S. President Donald Trump’s China tariff announcement triggered widespread liquidations, erasing nearly $19 billion in leveraged crypto positions and sending the index to a yearly low of 24.
Aggressive Selling Pressure Eases
Blockchain analytics firm Glassnode reported that Bitcoin’s selling pressure is subsiding, suggesting a potential market turnaround. In a recent post, the firm observed that spot and futures Cumulative Volume Delta (CVD) — a metric used to track buy and sell momentum — has flattened for the first time since the mid-October crash.
“Aggressive selling pressure has subsided over the last several days,” Glassnode noted, adding that funding rates remain below the neutral level of 0.01%, indicating no excessive long positioning or speculative froth. The data also shows that funding turned negative multiple times over the past two weeks, reflecting ongoing trader caution.
Macroeconomic Tailwinds Ahead
Investors are also eyeing macroeconomic factors that could boost Bitcoin’s short-term outlook. The market widely expects the U.S. Federal Reserve to announce a quarter-point rate cut during its upcoming Oct. 29 meeting, with CME Group’s FedWatch tool indicating a 96.7% probability of such a move.
Rate cuts typically reduce the cost of capital and can strengthen risk assets like Bitcoin, particularly as the U.S. dollar shows signs of softening.
While Bitcoin’s return to neutral sentiment doesn’t yet signal a full bullish reversal, it marks a crucial psychological shift for traders. With selling pressure easing, macro conditions improving, and market confidence slowly rebuilding, analysts suggest that the crypto market could be on the verge of a broader recovery phase — provided global policy and economic signals remain supportive.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.