For the first time since October, the Crypto Fear & Greed Index has slipped back into neutral territory. This is often considered the start of a transition phase, where traders reassess risk.
How this will affect the immediate future is still unclear, but neutrality itself is telling.
As of January 2026, the Crypto Fear & Greed Index has returned to neutral, sitting around the low 40s.
There’s a calm about the market that has completely sidelined the fear. Over the past few months, optimism faded with rallies failing to gain follow-through.
Price action has remained active, but with no aggressiveness in either direction. Indecision is the main cause.
The last time crypto sentiment was neutral, the calm didn’t last long.
In early October 2025, optimism faded after months of gains, even at elevated prices. Bitcoin [BTC] saw record highs above $125,000, but the pace was already slowing.
When selling finally picked up, the move was quick. BTC slid to nearly $80,000 in a matter of days, wiping out more than a third of its value.
Altcoins suffered greater losses, with many collapsing almost overnight. The altcoin market, excluding BTC and Ethereum [ETH], saw roughly a third of its value erased in a single session.
After weeks of choppy, lower-range trading, Bitcoin has pushed higher. The coin has reclaimed the $90K zone, putting up consecutive strong green candles.
RSI was above 60 at the time of writing, so bullish pressure was growing. Meanwhile, MACD flipped positive, with clear indication of upside momentum building.
Importantly, this rally came after a long consolidation, so the price action looks very healthy. As long as Bitcoin holds above recent breakout levels, the trend is likely to continue. Neutral sentiment means traders are selective.
Nic Puckrin, investment analyst and co-founder of Coin Bureau, told AMBCrypto,
