The Crypto Fear and Greed Index hit 50 on Tuesday, measuring “neutral” for the first time since Jan. 17. This shift ended a 108-day stretch dominated by negative sentiment. The index gauges market sentiment using volatility, momentum, trading volume, and social signals. A score below 25 signals “extreme fear” or risk aversion, while 26–49 reflects cautious positioning or “fear,” with higher readings indicating improving investor confidence.
Crypto Fear and Greed Index. Source: Alternative.me
The index’s move to 50 marks its first neutral score since mid-January and follows a steady recovery in the total crypto market capitalization, which rose 5.45% in May. Since March, the market has expanded by 16.51%, climbing to $2.66 trillion from $2.28 trillion.
TOTAL market cap on the one-month chart. Source: Cointelegraph/TradingView
The positive shift in sentiment aligns with Bitcoin’s attempt to stabilize above the $81,000 level. Crypto analyst Darkfost noted that BTC sentiment is turning more constructive as the price tests higher levels. The analyst added that a separate sentiment index, ranging from -100 to +100, has also edged into the greed zone. This indicates that investor confidence is improving, with a growing preference to hold BTC rather than exiting positions.
Bitcoin unified sentiment index. Source: CryptoQuant
January showed a similar shift in sentiment before the momentum faded. Darkfost pointed to the current phase as a potential pivot, with investor behavior shaping the next move.
Related: Bitcoin ‘supercycle’ or a bear market rally? BTC breaking $81K has traders at odds
Stablecoin outflows may stall momentum
Binance stablecoin netflows have recorded a cumulative outflow of $11.8 billion since April 25. This metric tracks the movement of stablecoins into and out of the exchange and is often used as a proxy for available buying power.
Positive net flows signal capital entering the exchanges, often associated with accumulation. A negative net flow indicates capital leaving, which can reduce liquidity for spot crypto purchases.
Binance stablecoin netflows. Source: CryptoQuant
Recent data shows a sustained drainage phase, with daily outflows exceeding $1.5 billion across multiple sessions. Earlier in April, Binance saw consistent inflows as Bitcoin climbed from $74,000 toward $78,000. That inflow cycle has now reversed.
Market analyst Crazzyblockk noted that the earlier buildup of stablecoin reserves helped fuel the upward movement. The current outflow trend suggests this pool of deployable capital has thinned in the short term, potentially tempering the bullish momentum for BTC and other crypto assets.
Related: Crypto products post 5th straight week of inflows despite mid-week selloff