The mood among crypto investors is changing! On March 20, the Crypto Fear & Greed Index increased by 17 points in just one day, reaching 49. This shifts it from “Fear” territory into a more balanced area.
The Crypto Fear & Greed Index, which is calculated by Alternative, considers elements like market momentum, volatility, Bitcoin’s dominance, and social media hype to assess investor sentiment. This move toward neutral indicates a more stable view – investors aren’t too scared, but they aren’t extremely greedy either.
This improved sentiment follows the Federal Reserve’s decision on March 19 to keep interest rates constant at 4.25%–4.50%. The pause on rate hikes shows ongoing economic uncertainty.
Fed Chair Jerome Powell noted that inflation remains a concern and warned that tariffs, especially those from the Trump period, could prolong the fight against rising prices.
While the Fed’s “dot plot” still predicts two rate cuts in 2025, Powell admitted it’s hard to fully evaluate the effect of tariffs on inflation. The central bank now anticipates GDP growth of 1.7%, down from the 2.1% prediction in December.
Following the Fed’s announcement, the S&P 500, Nasdaq, and Dow Jones all closed up by over 1%, and the crypto market experienced a significant surge. Bitcoin (BTC) increased by 3% to $85,786, briefly reaching $87,431, its highest point since March 9. Ethereum (ETH) rose by 4% to $2,022, and Solana (SOL) increased by 6% to $133.
The total crypto market capitalization is now at $2.91 trillion, up 2% in the past 24 hours. The futures market responded strongly, with $355 million in liquidations over 24 hours, including $258 million in short positions, according to Coinglass.
In the meantime, excitement is growing for the introduction of a Solana Exchange Traded Fund (ETF) on Thursday, March 20. Furthermore, Intrigue Ignited by Enormous Bitcoin Dispatch: The Motive Behind the 2 Million Action? ETFs have changed direction after five weeks of outflows, with weekly inflows of $483 million, according to SoSoValue.
Regardless of the Federal Reserve upholding its position, Powell remarked on a deceleration in purchaser expenditures, a crucial financial impetus. Maneuvering through a doubtful financial strategy terrain, financiers are intently scrutinizing inflationary inclinations and prospective tariff insinuations, steering to marketplace instability.
The commencement of a Solana ETF, paired with revitalized necessity for Bitcoin investment commodities, indicates enhancing marketplace disposition and burgeoning organizational curiosity in virtual resources.
