The CoinMarketCap “Crypto Fear and Greed Index,” a measure that tracks crypto investor sentiment, moved to “neutral” on Sunday, for the first time since October, signaling that investor sentiment is improving.
The index is at 40, indicating that investors are no longer afraid, but they are also not optimistic about the crypto market. The Index recorded its lowest sentiment reading of 2025 in November, when it reached 10, indicating “extreme fear”, according to CoinMarketCap.
Cryptocurrency investor confidence plummets in October, triggered by a historic stock market crash which derailed the crypto market’s bull run. The price of Bitcoin (BTC) hit an all-time high above $125,000 a few days before the crash, eventually falling to around $80,000, a 35% decline.
Altcoins are doing less well, with many tokens lose the majority of their value overnight, and the total market cap of crypto altcoins, which does not include ETH or BTC, fell by around 33% in a single day.
Sentiment among crypto investors has improved from “extreme fear” that characterized the end of 2025signaling hope for early 2026, but growing geopolitical tensions and a lack of interest in retailers there could be headwinds in the new year.
Related: Crypto Sentiment Shifts Away From Extreme Fear, But “Mixed Emotions” Persist
All eyes on US after Venezuela strike
Media headlines continue to be dominated by the US strike against Venezuela on Saturday, raising questions about its potential impact on financial markets.
“The United States of America successfully carried out a large-scale strike against Venezuela and its leader, President Nicolas Maduro, who was captured and expelled from the country along with his wife,” said US President Trump. announcement SATURDAY.
Bitcoin price remained resilient after attackwhich is not characteristic of risk on financial assets. Typically, risky assets experience sudden and sometimes violent price declines in response to macroeconomic and geopolitical events.
Market analysts disagree on how cryptocurrency prices will be affected by the incident, if at all, with some saying the attack will have an impact. little impact on the price of Bitcoin.
Yet others say investors should wait and see what traditional financial markets do Monday, when the American markets open.
Review: Strong Belief ETH Will Rise 160%, SOL Sentiment Opportunity: Trade Secrets
