Bitcoin Sentiment Returns to Neutral After Extended Fear Period
Bitcoin market sentiment has shifted to neutral for the first time in over two weeks. The move comes as the price of Bitcoin rebounded to around $115,000 over the weekend, reversing a recent period of negative market mood. The Bitcoin Fear & Greed Index, which tracks market sentiment, registered a score of 51 out of 100 on Sunday, placing it in the 'neutral' zone.
Sharp Sentiment Reversal Following Volatile Period
This development represents a sharp turnaround from recent weeks. The index rose 11 points from a 'fearful' score of 40 on Saturday and over 20 points from levels seen last week. Market volatility surged earlier in October following an announcement from former President Donald Trump on October 10. That event triggered a drop in the index from a 'greed' reading of 71 and led to $19 billion in leveraged positions being liquidated.
Selling Pressure Subsides as Recovery Continues
The change in sentiment is supported by on-chain analytics. According to data from Bitcoin analytics service Glassnode, selling pressure has lessened significantly. In a post on X, the platform highlighted that for the first time since the post-announcement drawdown, spot and futures Cumulative Volume Delta (CVD) have flattened, suggesting that aggressive selling has subsided.
- CVD flattening indicates reduced effect from large sellers
- Market participants appear less risk-averse as prices stabilize
Federal Reserve Decision May Influence Market Further
The market is also monitoring the upcoming interest rate meeting by the U.S. Federal Reserve scheduled for October 29. Anticipation is building around a probable 0.25% rate cut, with CME Group data indicating a 96.7% chance of such a move. Market participants often view interest rate changes as influential factors for digital asset prices, potentially affecting liquidity flows and investor sentiment.
The shift back to neutral sentiment signals an easing of recent market stress, though traders remain attentive to upcoming macroeconomic events.
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