The Crypto Fear and Greed Index shows significant improvement, rising from 32% to 45% last week, according to QCP Capital, indicating reduced investor fears despite impending tariff threats.
Current Market Situation
The current level of the Fear and Greed Index, although still in fear territory, is approaching neutrality at 49%. This indicates a broader easing of risk aversion in the market.
Factors Influencing Sentiments
The key factor driving the improved sentiment has been strong inflows into Bitcoin ETFs, with investors purchasing 8,775 BTC last week. This increase in institutional demand suggests renewed interest in crypto despite recent market volatility.
Impact of Tariff Risks
However, tariff hikes scheduled for April 2 could again weigh on risk assets, including Bitcoin and other cryptocurrencies. Market participants remain cautious amid ongoing geopolitical and macroeconomic uncertainties.
Despite the current rise in optimism in the cryptocurrency market, upcoming tariff changes pose a cautionary note for investors. The future direction will depend on the resolution of ongoing economic and geopolitical challenges.
