The Crypto Fear and Greed Index climbed 17 points in a day, reaching 49, indicating a shift from fear to neutral sentiment in the market.
Shift to Neutral Sentiment
Alternative’s Crypto Fear and Greed Index gauges investor sentiment by examining market momentum, volatility, Bitcoin dominance, and social media trends. The shift to neutral sentiment indicates a more balanced view of the market, with investors being neither overly fearful nor excessively greedy.
Impact of Fed’s Decision
Improving sentiment came as markets reacted positively to the Federal Reserve’s Mar. 19 decision to maintain interest rates at 4.25%–4.50%. Fed Chair Jerome Powell acknowledged that inflation remains stubbornly high and warned that Trump’s tariffs could prolong the fight against rising prices. The central bank now projects GDP growth of 1.7%.
Market Reactions
Following the Fed’s announcement, the S&P 500, Nasdaq, and Dow Jones all closed over 1% higher while crypto markets saw strong gains. Bitcoin rose by 3% to $85,786. Expectations around the upcoming launch of Solana ETFs and renewed demand for Bitcoin investment products both point to improving sentiment.
The market is closely watching inflation trends and possible tariff effects as it navigates a volatile environment due to the uncertainty surrounding monetary policy.
