Crypto Markets on Edge: Fed’s Rate Decision Sparks New Index Shift

crypto Sentiment Shifts to Neutral as Markets React Positively

The Crypto Fear and Greed Index has surged 17 points, hitting 49 on March 20. This move takes the market from “Fear” to “Neutral” territory. The index,created by Alternative,measures investor sentiment through market momentum,volatility,Bitcoin dominance,and social media trends.

This shift to a balanced view suggests investors are no longer overly fearful or greedy. The change comes as markets respond positively to the Federal ReserveS March 19 decision to keep interest rates at 4.25%–4.50%. The Fed is pausing rate cuts due to economic uncertainty.

Fed Chair Jerome Powell noted that inflation is still high.He warned that Trump’s tariffs could make it harder to control rising prices. The Fed now expects 1.7% GDP growth, down from 2.1% in December.

Following the fed’s announcement, major stock indices and crypto markets saw gains. bitcoin rose 3% to $85,786, while Ethereum gained 4% to $2,022.Solana climbed 6% to $133.The total crypto market cap is now $2.91 trillion, up 2% in 24 hours.

• Bitcoin ETFs saw $483 million in weekly inflows.
• Solana ETFs are set to launch on March 20.

These developments signal growing institutional interest in digital assets. Despite the Fed’s stable stance, Powell noted that consumer spending is slowing.Investors are closely watching inflation and tariff effects as the market navigates a volatile environment.