Analysts say October’s crash could mark a long-term bottom as the Fear & Greed Index shows slow recovery amid new U.S.–China trade clarity.
The global crypto market sentiment continues to hover in “Fear” territory, even as investors digest the newly announced trade deal between the United States and China. The Crypto Fear & Greed Index, a key barometer for investor psychology, registered a score of 37 on Sunday, up slightly from 33 on Saturday.
The improvement follows the White House’s announcement of a deal reached between President Donald Trump and Chinese President Xi Jinping, aimed at reducing trade tensions that have weighed on global markets since early 2024.
Crypto Market Reaction to U.S.–China Deal
In a statement, the White House described the deal as “a massive victory that safeguards U.S. economic strength and national security while putting American workers, farmers, and families first.”
While equity and commodity markets reacted positively, cryptocurrency prices have remained largely unchanged. Bitcoin (BTC) traded around $110,354, while Ether (ETH) rose marginally to $3,895, according to recent market data.
The crypto sector has often been sensitive to geopolitical trade developments. Earlier this year, the announcement of tariff suspensions briefly pushed the Fear & Greed Index from “Extreme Fear” (18) to “Fear” (39) within a day — signaling renewed optimism among traders.
Analysts See October Crash as a Bottom Signal
Despite limited short-term price reaction, market experts suggest the worst may already be behind. Michael van de Poppe, founder of MN Trading Capital, commented that the October crash could later be viewed as one of the “bottom days in hindsight.”
He added that the market remains in the early stage of a broader bull cycle, particularly for altcoins and Bitcoin, as macroeconomic clarity improves.
Crypto traders remain divided. Some, like analyst Ash Crypto, called the trade certainty “bullish for markets,” while others warn that sentiment recovery may take weeks as liquidity stabilizes.
Meanwhile, the White House confirmed it will maintain the suspension of reciprocal tariffs on Chinese imports until November 10, 2026, providing longer-term visibility for global markets.
Still, with the Fear & Greed Index stuck below 40, investor confidence remains fragile. Market watchers say true sentiment recovery will depend on sustained inflows, macro stability, and confirmation of a price trend reversal.
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.