For most of the past couple of months, crypto traders have been acting like they’re walking on ice: cautious steps, tight risk controls, and a constant eye on the next headline.
That mindset makes sense when you remember what kicked this whole mood shift off. In the October 10–11 liquidation shock, more than $19 billion in leveraged positions were wiped out in a day, with panic selling amplified by thin liquidity. Bitcoin slid to around $104,782 at the lows after trading near $122,574 earlier that Friday, and the broader market’s risk appetite got reset the hard way.
From “fear” toward “neutral”: a slow change in behavior
Sentiment trackers are finally hinting that the worst of the anxiety may be fading. Binance Square’s Crypto Fear & Greed Index now prints 42 (Neutral), after showing 40 (Fear) yesterday and 30 (Fear) last week.
That doesn’t mean traders are suddenly bullish again. “Neutral” is often less about excitement and more about hesitation — the market is no longer in full-on defensive mode, but it’s also not confident enough to chase risk aggressively.
CoinMarketCap’s own sentiment gauge showed how deep the fear got during the post-crash fallout: Fast Company reported the CMC Crypto Fear & Greed Index fell to 10 (extreme fear) on Saturday, Nov. 22, near historic lows for that indicator.
In other words: fear has cooled, but the scars from late-2025 volatility are still visible.
Bitcoin steadies in the upper-$80Ks to low-$90Ks
Price action has also calmed compared with the violent swings around the crash period.
Binance Market Data recently flagged Bitcoin crossing 88,000 USDT (Jan. 1), reflecting a market that’s trying to hold a familiar “big round number” zone rather than free-falling through it.
Reuters noted Bitcoin hit an all-time peak above $126,000 in early October, but struggled to regain footing afterward; by Dec. 31 it was last trading around $87,474 as macro pressure and fading momentum weighed on the space.
That combination — stabilization after a deep shock, but still far below peak euphoria — is exactly the kind of backdrop where “neutral” sentiment can stick around for a while.
Macro and geopolitics are back in the driver’s seat
Crypto doesn’t trade in a vacuum anymore. One of the clearest themes from 2025 was how quickly macro headlines spilled into crypto pricing — including the tariff and export-control messaging that preceded October’s liquidation cascade.
Now, geopolitics is the fresh variable traders are trying to price.
The Venezuela shock
Over the weekend, global headlines were dominated by the U.S. operation in Venezuela and the reported capture of Nicolás Maduro and his wife, with Maduro set to appear in New York federal court, according to CBS News’ live updates.
Reuters also reported international reaction to Trump’s statement about strikes and the capture.
Meanwhile, AP reported that Vice President Delcy Rodríguez became interim president after Maduro’s ouster, describing the sudden political transition inside Venezuela.
For crypto traders, the key question isn’t only what happens next in Venezuela — it’s whether this kind of event pushes markets into “risk-off” mode once traditional markets fully digest the news.
Bitcoin’s immediate reaction has been relatively composed, but that can be misleading. Weekend liquidity is thinner, and correlation effects often show up when U.S. equity and derivatives markets are back in full swing.
What to watch next (without overreacting to one index print)
A single “neutral” reading doesn’t confirm a new uptrend — it just tells you the crowd is less panicked than it was. If sentiment is truly stabilizing, you’ll usually see it confirmed across multiple lanes:
Volatility + leverage: are liquidations staying contained, or creeping higher again?
Traditional market correlation: does BTC follow equities more tightly as the week begins? Reuters highlighted the growing tendency for bitcoin to behave like a risk asset tied to stock sentiment.
Headline sensitivity: does geopolitical news create quick sell-offs, or does the market absorb shocks without cascading?
If “neutral” holds while price stays resilient, that’s often the first sign the market is rebuilding confidence — slowly, and with plenty of second-guessing.
Not financial advice. Crypto is volatile; manage risk accordingly.
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