When Bitcoin hits $80k, crypto fear and greed turn neutral.
Crypto Fear and Greed Index hit 50 on Tuesday, measuring “neutral” for the first time since January 17. The change ended a 108-day stretch marked by negative sentiment. The index shows market sentiment using volatility, momentum, trading volume and social signals. A score below 25 indicates “high fear” or risk aversion, while 26-49 reflects a cautious position or “fear” and higher readings indicate improved investor confidence.
Crypto Fear and Greed Index. Source: Alternative.me
The index's move to 50 marks its first neutral point since mid-January, and follows a steady recovery in the overall crypto market capitalization that rose 5.45 percent in May. Since March, the market has grown 16.51 percent, from $2.28 trillion to $2.66 trillion.
Total market value on a monthly chart. Source: Cointelegraph/TradingView
The positive sentiment shift coincides with Bitcoin's attempt to stabilize above the $81,000 level. Crypto analyst Darkfost It is mentioned BTC sentiment is becoming more constructive as the price tests higher levels. The analyst added that a separate sentiment index from -100 to +100 has entered the greed zone. This indicates that investors' confidence is improving, there is a growing desire to hold BTC instead of exiting positions.
Bitcoin Composite Sentiment Index. Source: CryptoQuant
January showed a similar shift in mindset before the momentum faded. Darkfost points to the current level as a potential pivot for investor behavior in charting the next move.
Related: Bitcoin ‘Supercycle' or Bear Market Rally? BTC Breaks $81K, Traders Confront.
It can slow down the exit speed of Stablecoin.
Binance stablecoin netflows They are registered A total of $11.8 billion in spending as of April 25. This metric tracks the movement of stablecoins into and out of the exchange and is often used as a proxy for purchasing power.
Positive net flows of token capital enter the exchanges, often associated with accumulation. A negative net flow indicates capital outflows, which can reduce liquidity for spot crypto purchases.
Binance stablecoin netflows. Source: CryptoQuant
Recent data shows that the level of drainage is continuous, with daily outflows exceeding $1.5 billion in several periods. In early April, Binance saw consistent gains as Bitcoin rose from $74,000 to $78,000. That admissions cycle has now been reversed.
Market analyst Crazyblockk It is mentioned Building an already stable coin inventory helped fuel the upward movement. The current trend of outflows suggests that this short-term reduction in capital stock may reduce the significant pressure on BTC and other crypto assets.
Related: Crypto Commodities Post 5th Straight Week of Gains Despite Midweek Selloff
