Crypto market sentiment has shifted out of “fear” territory for the first time in months, even as investors assess the fallout from a major geopolitical shock.
The CoinMarketCap “Crypto Fear and Greed Index,” which gauges market mood on a scale from 0 to 100, moved to a neutral reading of 40 on Sunday. The last time the index was neutral was in October. In November, it fell to 10, signaling “extreme fear” and marking its lowest level of 2025.
The sharp deterioration in sentiment late last year followed a historic crypto market crash that halted an ongoing bull run. Bitcoin briefly hit an all-time high above $125,000 on Coinbase before tumbling to around $80,000, a drop of about 35%.
Altcoins saw steeper declines. Many tokens lost most of their value overnight, and the combined market capitalization of altcoins excluding Bitcoin and Ether slid by roughly 33% in a single day.
The recent move from “extreme fear” to neutral suggests a tentative recovery in investor confidence heading into 2026. However, analysts warn that rising geopolitical tensions and muted retail participation could limit any sustained rally.
Attention has turned to the United States after a large-scale strike on Venezuela over the weekend, an event that is dominating global headlines and raising questions about potential market repercussions.
“The United States of America has successfully carried out a large-scale strike against Venezuela and its leader, President Nicolas Maduro, who has been, along with his wife, captured and flown out of the country,” US President Trump said on Saturday.
Bitcoin’s price held steady in the immediate aftermath of the strike, an unusual reaction for a risk-on asset class that often sees sharp moves on major geopolitical or macroeconomic news.
Market commentators are split on whether the incident will materially affect crypto prices. Some argue it will have limited impact on Bitcoin, while others say investors should wait to see how traditional markets react when US trading resumes on Monday.
A separate analysis in Cointelegraph’s Magazine section highlights high conviction calls for a potential 160% rally in Ether and explores sentiment-driven opportunities in Solana.