Bitcoin’s Greed Fever Breaks—Market Sentiment Cools to Neutral

The crypto rollercoaster takes another turn as Bitcoin investors ditch their ’to the moon’ memes for measured skepticism.

After months of euphoric price predictions and leverage-fueled bets, the mood has flatlined—neutrality reigns. No more diamond hands, no panic sells... just the eerie calm of a market catching its breath.

Traders who once FOMO’d into every dip now scrutinize charts like Wall Street analysts (though let’s be honest—with marginally better fashion sense). The fear-and-greed index, crypto’s emotional polygraph, confirms the shift: extreme greed got benched.

Is this the prelude to a breakout or the quiet before a dump? Even the TA gurus won’t risk their Twitter credibility on that call. Meanwhile, traditional finance bros nod sagely—’See? We told you crypto was volatile’—while quietly rebalancing their 1% BTC ETF allocations.

In Brief

• Bitcoin reached a historic high of $112,000 on May 22 before retreating to $104,500 within a few days.
• This 4.13% drop coincided with a sharp fall in the Crypto Fear and Greed Index, which dropped from 60 to 50 in 24 hours.
• Despite this pullback, bitcoin remains 5.56% above its November 2024 level, which could indicate a consolidation phase.
• Future developments will largely depend on technical signals and the return of investor confidence.

The Drop of the Sentiment Indicator: A Sharp and Quantified Shift

Between May 24 and 31, bitcoin experienced a slight pullback causing panic in the markets, but it was the abrupt reversal of market sentiment that truly caught observers’ attention.

The crypto Fear and Greed Index (CFGI), a key psychological barometer for crypto investors, underwent a rapid and marked shift, revealing a sudden loss of confidence or, at the very least, a suspension of euphoria.

Here are the important elements of this shift:

• The price of bitcoin dropped from $109,000 to around $104,500 over the course of a week, recording a 4.13% decline against the US dollar;
• This movement caused the CFGI indicator to fall from 60 (greed) on May 30 to 50 on May 31;
• The CFGI settled precisely at 50, in the heart of the neutral zone, after oscillating between “greed” and “extreme greed” in the preceding days;
• This neutrality comes after bitcoin reached a historic record on May 22: between $111,814 and $111,970, with some platforms briefly showing $112,000;
• At that time, the sentiment index flirted with extreme greed, as was the case in November 2024 when the CFGI peaked at 94 out of 100, with BTC at $98,997.

The score of 50 constitutes a pivotal zone: neither Optimism nor panic. This reading “is just one point above fear, and one point below greed”, illustrating the current emotional fragility.

Contrary to what one might think, it is not the price drop that scares here, but the abruptness of the perception change, revealing a market losing its short-term bearings.

The Consolidation or the Exhaustion of the Bitcoin Market

Beyond immediate numbers, it is the interpretation of this neutrality that intrigues analysts. The return of the CFGI to 50 does not mark the end of a frenzy, but the beginning of a suspended moment, a sort of parenthesis in the emotional cycle of the market.

This median reading, at 50, coincides with bitcoin at around $104,500, a 5.56% increase compared to its November 2024 valuation. This data is key: bitcoin remains, despite everything, well above its previous levels of high sentiment, which might indicate a consolidation phase rather than a DEEP reversal.

This zone of neutrality occurs in a context of “a new FORM of price discovery”. It is no longer euphoria driving decisions, but a form of temporary disorientation, typical of transition periods.

The absence of clear direction, after a historic peak, reveals tension between those anticipating a continued bullish MOVE and those fearing a more pronounced correction. The fact that the market remains stable, despite this sentiment pullback, also highlights a certain maturity among investors, now more sensitive to cycles than emotional peaks.

While the CFGI reflects deep indecision, the market seems to be preparing for a new chapter, although its direction cannot yet be determined. This relative calm could lead either to a bullish recovery supported by strong fundamentals and investor appetite, or a more sustained pullback if investor confidence continues to erode. For now, bitcoin remains in a precarious balance: stable but vulnerable. In the very short term, technical signals and trading volumes will be decisive in determining whether this neutrality marks a pause… or the start of a deeper trend change.

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