Bitcoin Updates: Steady Crypto Mood Indicates Market Recalibration for Lasting Growth

Coinotag.> As of October 28, the cryptocurrency Fear and Greed Index has risen to 51, indicating a shift to "neutral" sentiment after a prolonged period of extreme fear, according to alternative data sources. This marks a 22-point increase from last week's score of 29, signaling improved investor confidence and easing selling pressure. The index, which considers factors such as volatility, trading activity, social media trends, and dominance, now points to a more balanced market climate, encouraging cautious engagement.

BlockBeats News.> The index's recent climb comes after a turbulent October, where it fluctuated between greed (reaching 74 on October 5) and extreme fear (dropping to 22 on October 17). The latest recovery was spurred by a $19 billion liquidation event on October 10, following President Donald Trump's announcement of tariffs on China, which temporarily sent Bitcoin below $107,000 before it rebounded to $115,566. Market analysts observe that Bitcoin's share of the crypto market has increased to 55%, with spot trading volume jumping 31.1% to $75 billion, according to Cryptorank.

The neutral index reading is prompting investors to take a more measured approach, focusing on technical signals rather than news headlines. Data from Glassnode indicates that cumulative volume delta—a measure of buying activity—has stabilized since the October 10 sell-off, implying that downward pressure has subsided. At the same time, CryptoQuant's Bitcoin Combined Market Index (BCMI) has also returned to neutral, a level that has historically preceded new bullish trends. "This is a period of consolidation, not decline," one analyst commented, noting that undervalued indicators such as Bitcoin's MVRV ratio (1.8) and SOPR (1.02) point to accumulation instead of panic selling.

Both institutional and retail investors are closely watching Bitcoin's accumulation phase, characterized by decreasing exchange reserves and increasing off-exchange holdings. CryptoQuant notes that this trend often comes before upward price movement, as seen in the 2020 and 2024 cycles. Over the past week, Bitcoin's market capitalization grew by 2.76% to $2.3 billion, while and also posted gains amid renewed optimism regarding Binance's outlook following CZ's pardon.

While there is a sense of cautious optimism, risks remain. The index is still sensitive to global economic events, and regulatory actions—such as BlackRock's Larry Fink referring to Bitcoin and gold as "assets of fear," as reported by —underscore ongoing doubts. Nevertheless, the stabilization of funding rates and the normalization of perpetual trading volumes indicate that long-term investors are gradually returning. As one analyst put it, "The volatility in October may have set the stage for a healthier, more sustainable rally."