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Bitcoin’s Resilience: From Extreme Fear to Neutral Sentiment as Market Eyes Recovery

Bitcoin’s Resilience: From Extreme Fear to Neutral Sentiment as Market Eyes Recovery

Published:
2025-04-26 10:36:22
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The cryptocurrency market has shown remarkable resilience as Bitcoin recovers from earlier extreme fear levels, with the Crypto Fear and Greed Index now reflecting a neutral sentiment. This shift underscores the dynamic nature of crypto markets and sets the stage for potential future growth.

Crypto News Today Live: Market Sentiment Shifts Neutral as Bitcoin Recovers

The Crypto Fear and Greed Index now stands at 53, reflecting a neutral market sentiment after climbing from 34 last month. This marks a notable recovery from March’s extreme fear levels of 15, though still far below November 2024’s peak greed reading of 88.

Bitcoin’s price action mirrors these sentiment swings—rallying above $100,000 during periods of extreme greed while plunging during capitulation events. The current equilibrium suggests cautious Optimism among traders as the market digests recent volatility.

Switzerland’s Crypto Regulation Faces Heat as Bitcoin Reserve Strategy Sparks Debate

Switzerland is under increasing pressure to reconsider its Bitcoin reserve strategy amid rising inflation and global economic uncertainty. A coalition of crypto advocates has initiated a referendum, pushing the Swiss National Bank (SNB) to include Bitcoin in its reserves alongside gold as a hedge against instability.

The SNB, however, remains steadfast in its opposition. Chairman Martin Schlegel recently dismissed the proposal, citing Bitcoin’s volatility as incompatible with the bank’s need for highly liquid and stable assets. "Bitcoin lacks the necessary qualities for official reserves," Schlegel asserted during a recent meeting.

Swiss National Bank Rejects Bitcoin Reserves Amid Volatility Concerns

The Swiss National Bank has ruled out adding Bitcoin to its reserves, citing liquidity risks and price volatility as key deterrents. President Martin Schlegel confirmed the decision during the bank’s 2025 General Assembly, reinforcing a cautious stance toward direct cryptocurrency exposure.

Despite this policy, the SNB maintains indirect Bitcoin holdings through equity positions in Tesla, MARA Holdings, and CleanSpark—a strategic compromise that balances innovation with risk management. The move reflects central banks’ broader hesitation to embrace crypto assets as reserve currencies, even as institutional adoption grows elsewhere.

Bitcoin ETFs See $3 Billion Inflows as BTC Price Rally Accelerates

BlackRock’s IBIT Bitcoin ETF recorded a $643 million single-day inflow—its strongest since January—as Bitcoin surged past $92,000 amid favorable U.S.-China trade developments. The broader spot Bitcoin ETF market absorbed $916 million that day, signaling resurgent institutional demand.

IBIT now commands $53.77 billion in assets, cementing its dominance with a ’Best New ETF’ accolade. The product’s success has reignited momentum across the crypto ETF sector, with U.S. spot Bitcoin funds collectively attracting over $3 billion this week—their first net positive week in five.

Bitcoin’s Apparent Demand Hits Positive Spike, Setting Stage for Rally

Bitcoin’s Apparent Demand has flipped positive after plunging below -200,000 earlier in 2025, signaling a potential resurgence in investor confidence. The metric, which tracks net demand over a 30-day period by analyzing wallet accumulation and exchange outflows, suggests renewed accumulation activity.

U.S. spot BTC ETFs recorded $3.06 billion in net inflows across five consecutive days, underscoring institutional participation. Binance Futures’ negative funding rates further reinforce the bullish technical setup as Bitcoin approaches the $100,000 psychological level.

On-chain data reveals a stark reversal from earlier weakness, with CryptoQuant’s IT Tech noting the demand rebound could mark an inflection point. The combination of ETF inflows, derivatives positioning, and on-chain accumulation patterns paints a constructive technical picture for BTC’s next leg higher.

|Square

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