After almost two weeks of tension, the cryptocurrency market is finally showing signs of recovery. The Fear and Greed Index, which reflects investor sentiment, has risen to neutral values for the first time since mid-October. Bitcoin has strengthened around $115,000 during this time, demonstrating that market participants are beginning to regain confidence in growth.
Investor Sentiment Is Changing
The Fear and Greed Index reached 51 out of 100, exiting the ‘fear zone’ for the first time in a month. As recently as Saturday, the indicator was at 40, and a week earlier — just 30. Such a jump of 20 points in a few days indicates a sharp change in sentiment — from panic to cautious optimism.
The reason for the recent fear was Donald Trump’s statement on October 10 about new tariffs against China. It triggered a wave of sell-offs in global markets and crashed the crypto index from a ‘greedy’ 71 points to 24, the lowest value since the beginning of the year. Over $19 billion in leveraged positions were liquidated in a day, and the market capitalization dropped by tens of billions of dollars.
Now the background is leveling out. Investors are starting to assess the situation more carefully, and seller activity is decreasing. The market is gradually emerging from a state of shock.
Selling Pressure on Bitcoin Weakens
Analytics company Glassnode has recorded a noticeable decrease in aggressive selling. The CVD (Cumulative Volume Delta) metric, which reflects the balance between buyers and sellers, has stabilized for the first time since the beginning of the month. This means that the mass pressure on the price is weakening, and equilibrium is gradually returning.
‘Aggressive selling has subsided, and futures and spot volumes are leveling out,’ Glassnode analysts note.
At the same time, the funding rate for Bitcoin futures remains below the neutral level of 0.01%. This indicates that traders are not opening excessively large long positions and are acting cautiously. In the past two weeks, the rate has dipped into negative territory several times, showing that caution still prevails in the market rather than speculative excitement.
This dynamic is usually observed at transitional stages of the market, when panic has already passed but confidence in growth is only beginning to return.
Investors Await Signals from the Fed
The next important factor for the market is the meeting of the US Federal Reserve, scheduled for October 29. The outcome will determine whether the positive sentiment among market participants will persist.
Almost 97% of surveyed analysts, according to CME Group FedWatch, expect a 0.25 percentage point rate cut. For investors, this will confirm that the Fed is moving toward easing policy, which in turn creates favorable conditions for risk assets, including cryptocurrencies.
Historically, periods of rate cuts have led to increased interest in Bitcoin, which is often seen as an alternative to traditional instruments in times of dollar weakening.
The Market Is Coming Back to Life, but Cautiously
Despite the improvement in sentiment, analysts emphasize: the market is still far from euphoria. Trust is returning gradually, and participants remain cautious. Any political statements, new tariffs, or unexpected regulatory decisions could bring fear back again.
Nevertheless, the current state of the market looks more balanced than at the beginning of the month. Buyers have started to cautiously build up positions, while sellers are reducing activity. If this trend continues, the cryptocurrency market could enter a phase of sustainable recovery as early as November.
Bitcoin remains the key indicator of these changes. Its stability at around $115,000 shows that panic has subsided and players are ready to act again. And although confidence is still fragile, it is returning — step by step, along with growing trust in digital assets.
Read more: 4 economic events in the US that will affect the crypto market this week
