Key Takeaways

The Crypto Fear & Greed Index has returned to neutral for the first time since October 2025.
Market conditions are calm, with traders reassessing their risk perspectives.
Historical trends suggest that previous neutral sentiments did not last long.
Bitcoin has recovered to the $90K range, showing signs of bullish momentum.
Caution is emphasized among traders in the current market climate, while institutional investments rise.

Crypto fear and greed index flips to 'neutral' as Bitcoin reclaims $90K

For the first time since October, the Crypto Fear & Greed Index has moved back to a neutral state. This shift typically signals a transition phase during which traders reevaluate their risk levels. The impact of this neutrality on the near future is uncertain, but it plays a significant role in market assessment.

Current Market Calm

As of January 2026, the Crypto Fear & Greed Index has settled into neutral territory, hovering in the low 40s.

crypto fear and greed Source: Coinmarketcap

The market is exhibiting a calm demeanor that has eased fear among traders. In recent months, optimism has diminished as price rallies struggled to gain momentum. Despite persistent market activity, neither upward nor downward trends have exhibited strong direction, leading to a state of indecision.

Historical Sentiment Trends

Historically, the last time the crypto market's sentiment hit a neutral point, the stability was short-lived.

In early October 2025, a decline in optimism followed months of profit-making, even at elevated Bitcoin prices over $125,000. As selling pressure increased, Bitcoin's value quickly dropped to nearly $80,000 within days, erasing over a third of its worth. Altcoins suffered even more significant losses, with many decreasing dramatically in value almost overnight, leading the broader altcoin market, excluding Bitcoin and Ethereum, to lose about a third of its value in just one day.

Bitcoin's Current Strength

After weeks of turbulent trading within a lower price range, Bitcoin has surged again, reclaiming the $90K threshold with a series of strong upward price movements.

Source: TradingView

At the time of writing, the Relative Strength Index (RSI) was above 60, indicating strengthening bullish sentiment. Furthermore, the Moving Average Convergence Divergence (MACD) has turned positive, suggesting the emergence of upward momentum. This rally follows an extended period of consolidation, indicating a healthy price action trend. Should Bitcoin continue to remain above critical breakout levels, this positive trend is likely to persist. The neutral market sentiment indicates that traders are exercising caution and making selective moves.

Investment analyst Nic Puckrin, co-founder of Coin Bureau, stated to AMBCrypto, “Bitcoin was so oversold at the end of last year that we’re now seeing a reflexive bounce. ETF inflows suggest institutions are re-entering, but this does not imply that Bitcoin and gold are converging; for now, it’s merely coincidental.”

Closing Thoughts

The cryptocurrency market remains in a state of neutrality, presenting both opportunities and risks for traders and investors as they navigate this transitional phase.