Crypto market fear eases as Bitcoin reclaims $64K

Sentiment on the crypto market is improving sharply. The Fear & Greed Index has risen to 41 points, reaching its highest level in 97 days. The market remains officially in the Fear category, but it is moving closer to neutral sentiment.

Fear & Greed Index jumps

The change has been rapid. Yesterday the index stood at 31 points, while a week ago it was 29. A month ago the gauge recorded just 28 points.

With the current reading of 41 points, the boundary into Neutral is now within reach. This suggests that investors are regaining confidence after months of caution.

A key driver is Bitcoin’s recovery. BTC has climbed back above $64.000. At the same time, inflows into Bitcoin ETFs are returning after a prolonged period of capital outflows.

Expectations around the Federal Reserve are also playing a role. The market now sees a lower chance of a rate hike in September, which could prove positive for risky assets such as crypto.

The Fear & Greed Index remains only a sentiment indicator and does not predict future price movements. However, the rise from 28 to 41 within a month clearly shows that the extreme caution among crypto investors is easing.