The CoinMarketCap “Crypto Fear and Greed Index,” a metric tracking crypto investor sentiment, flipped to “neutral” on Sunday, for the first time since October, signaling that investor sentiment is improving.
The Index is at 40, signaling that investors are no longer fearful, but they are not bullish on the crypto market either. The Index recorded its lowest sentiment reading of 2025 in November, when it hit a 10, indicating “extreme fear,” according to CoinMarketCap.
Crypto investor sentiment plunged in October, sparked by a historic market crash that derailed the crypto market bull run. The price of Bitcoin (BTC) hit an all-time high above $125,000 days before the crash, eventually falling to about $80,000 — a 35% drop.
Altcoins fared worse, with many tokens shedding the majority of their value overnight, and the total crypto altcoin market cap, which does not include ETH or BTC, plummeted by about 33% in a single day.
The sentiment among crypto investors improved from the “extreme fear” that characterized the end of 2025, signaling hope for the start of 2026, but growing geopolitical tensions and a lack of retail interest could be headwinds in the new year.
Related: Crypto sentiment shifts off extreme fear, but ‘mixed emotions’ persist
All eyes are on the US following the strike on Venezuela
Media headlines continue to be dominated by the US strike on Venezuela, which occurred on Saturday, raising questions about the potential impact on financial markets.
“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 announced on Saturday.
The price of Bitcoin stayed resilient in the aftermath of the attack, which is uncharacteristic of risk-on financial assets. Typically, risk-on assets see sudden and sometimes violent price declines in response to macroeconomic and geopolitical events.
Market analysts disagree on how crypto prices will be impacted by the incident, if at all, with some saying the attack will have little impact on Bitcoin’s price.
Still, others say that investors must wait and see what traditional financial markets do on Monday, when US markets open.
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