Crypto fear and greed index hits 49 as fed holds rates steady

The Crypto Fear and Greed index climbed 17 points in one day, reaching 49 on March 20, going from “fear” to “neutral” territory.

The Crypto Fear and Grid index of alternative Garges of investors of the feeling of investors by examining the momentum of the market, volatility, the domination of bitcoin and social media trends. The transition to neutral feeling indicates a more balanced vision of the market, investors being neither too frightening nor excessively greedy

Improving the feeling came as the markets reacted positively to the decision of the Federal Reserve 19 in March of maintain Interest rate at 4.25% to 4.50%, extending your break on rate drops due to economic uncertainty.

The president of the Fed, Jerome Powell, acknowledged that inflation remains stubbornly high and warned that Trump price could prolong the fight against the price increase.

While the dowry plot of the Fed always projects two rates cuts In 2025, Powell admitted that it was difficult to assess the full impact of inflation prices. The central bank now projects GDP growth of 1.7%, compared to 2.1% in December.

After the Fed’s announcement, the S&P 500, the Nasdaq and the Dow Jones all closed more than 1% more while the cryptographic markets have experienced high gains. Bitcoin (BTC) increased from 3% to $ 85,786, briefly reaching its highest level since March 9 at $ 87,431. Ethereum (Ethn) up 4% to $ 2,022 and Solana (GROUND) is up 6% to $ 133.

The total market capitalization of cryptography is now 2.91 billions of dollars, up 2% in 24 hours. The term markets reacted strongly, with $ 355 million in 24 hours, $ 258 million of which were short positions, depending on Coiinglass data.

Meanwhile, expectations are built in the next launch Funds negotiated in exchange for Solana, scheduled for Thursday, March 20. At the same time, after five weeks of withdrawals, the ETF Bitcoin reversed their trend, recording weekly entries of $ 483 million, according to Sosovalue data.

The launch of Solana ETFs and the renewed demand for Bitcoin investment products indicate both the improvement in feeling and the increase in institutional interests for digital assets.

Despite the stable position of the Fed, Powell stressed that consumer spending, a key factor in economic growth, are starting to slow down. Investors are looking closely at inflation trends and possible pricing effects because the market sails in a volatile environment due to uncertainty surrounding monetary policy.