The Crypto Fear and Greed Index rose 17 points in a day, reaching 49 points on March 20th, moving from “terror” to “neutral” territory.
Alternative Cryptographic Fear and Grid Index measures investors’ sentiment by examining market momentum, volatility, Bitcoin domination, and social media trends. The transition to neutral emotions gives a more balanced view of the market, with investors not being overly afraid or overly greedy
The improved sentiment has responded positively to the Federal Reserve’s March 19 decision to keep the market at 4.25%-4.50%, extending the suspension of interest rate cuts due to economic uncertainty.
Fed Chair Jerome Powell admitted that inflation remains stubbornly high and warned that Trump’s tariffs could extend the fight against price rises.
The Fed’s dot plot still predicts two interest rate cuts in 2025, but Powell acknowledged that it is difficult to assess the full impact of tariffs on inflation. The central bank is currently reducing GDP growth by 1.7% from 2.1% in December.
Following the Fed’s announcement, the S&P 500, Nasdaq and Dow Jones all closed at least 1%, but the crypto market has earned strong profits. Bitcoin (BTC) rose 3% to $85,786, reaching its highest level at $87,431 since March 9th. Ethereum (ETH) rose 4% to $2,022, while Solana (Sol) rose 6% to $133.
Total crypto market capitalization is currently at $2.91 trillion, up 2% in 24 hours. Futures Markets responded sharply, with a $355 million liquidation over 24 hours, with $258 million short positions, according to Coinglass data.
Meanwhile, expectations are building during the upcoming launch of Solana Exchange-Traded Funds, set for Thursday, March 20th, after a five-week withdrawal, after Bitcoin ETF recorded an influx of $483 million each week, according to SoSovalue data.
The launch of the Solana ETF and the updated demand for Bitcoin investment products indicate improved sentiment and increased institutional interest in digital assets.
Despite the Fed’s stable stance, Powell noted that consumer spending, a key factor in economic growth, is beginning to slow down. Investors are closely monitoring the trends inflation and the impact of possible tariffs as they navigate a market volatile environment due to uncertainty surrounding monetary policy.
