Fear and Greed Index Hits Neutral as Bitcoin Holds $81K
Crypto Fear and Greed Index hit 50 on Tuesday, its first neutral reading since Jan. 17 after 108 days of negative readings, as Bitcoin tests and holds above $81,000.
The Crypto Fear and Greed Index reached 50 on Tuesday, the first neutral reading since Jan. 17 and the end of a 108-day stretch of negative sentiment. The index uses measures of volatility, momentum, trading volume and social signals. Scores below 25 indicate extreme fear, 26–49 indicate fear, and higher scores indicate rising confidence.
Total crypto market capitalization rose 5.45% in May and is up about 16.51% since March, expanding to roughly $2.66 trillion from $2.28 trillion. Bitcoin has been testing and attempting to stabilize above $81,000. A separate unified Bitcoin sentiment gauge, which runs from -100 to +100, has moved into the greed zone.
Analyst Darkfost wrote that Bitcoin sentiment has become more constructive as the price tests higher levels and described the current phase as a potential pivot after a similar uptick in January faded.
Stablecoin flows on major exchanges have moved in the opposite direction. Binance recorded cumulative net outflows of about $11.8 billion in stablecoins since April 25, with multiple sessions showing daily outflows above $1.5 billion. In early April, steady stablecoin inflows accompanied Bitcoin’s rise from roughly $74,000 to $78,000; that inflow cycle has reversed.
Market commentator Crazzyblockk wrote: “The earlier buildup of stablecoin reserves helped fuel the upward movement,” and added that ongoing outflows have thinned the pool of deployable capital, which could limit buying power if the trend continues.
Analysts cite investor behavior, exchange liquidity and macroeconomic conditions as factors that will determine whether neutral sentiment translates into sustained demand or reverts to risk aversion. Traders are monitoring on-exchange liquidity and order flows for signs of whether demand can keep pace with price tests at higher levels.
The neutral reading marks a reversal from the prolonged negative scores earlier this year. Market participants continue to watch price action, exchange flows and liquidity for further signals.
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