Crypto Fear & Greed Index Drops to 49, Market Shifts from 'Greed' to 'Neutral'

The Crypto Fear & Greed Index dropped to 49 on 2026-01-15, marking a shift from 'greed' to 'neutral' sentiment in the crypto market. The index had previously risen to 61 on January 14, entering 'greed' territory for the first time since October 2025. This change reflects a more cautious stance from investors following recent price volatility and regulatory developments.

Bitcoin spot ETFs experienced strong inflows on Wednesday, with $840 million in net inflows recorded. iShares Bitcoin Trust ETF (IBIT) led the inflows, bringing in $648 million. These inflows helped stabilize broader market confidence as Bitcoin rebounded to two-month highs.

Ethereum spot ETFs also saw increased demand, with $175 million in inflows on Wednesday. iShares Ethereum Trust ETF (ETHA) topped Ethereum ETF inflows with $82 million. The rise in Ethereum's price aligns with broader market optimism, with the token trading at $3,310.

Bitcoin's price rose to over $97,700 in early January, the highest level since mid-November 2025. This increase coincided with the Crypto Fear & Greed Index reaching 'greed' levels, reflecting a broader shift in investor sentiment. Bitcoin's price is currently trading near $96,600.

Why the Move Happened

The shift in sentiment follows the October 2025 liquidation event, which saw $19 billion in forced closures and triggered a prolonged risk-off period. In the weeks after the liquidation, the index remained in 'extreme fear' territory, with readings dropping into the low double digits.

Bitcoin's recent price performance helped improve investor confidence, with the token rising from $89,800 to a two-month high of $97,704. This move was supported by strong ETF inflows and reduced leverage exposure in the market.

How Markets Responded

Ethereum's price movement reflects a shift toward spot-driven demand. The Ethereum estimated leverage ratio declined to 0.66, signaling a reduced appetite for leveraged positions. This decline coincided with a drop in Ethereum's open interest, which fell by 140K ETH despite price gains.

US-based spot investors have also resumed buying activity, with the Coinbase Premium Index showing a positive trend. Ethereum ETFs posted $175 million in inflows on Wednesday, marking the highest inflows in over a month.

What Analysts Are Watching

Analysts are monitoring Ethereum's price action near key moving averages. The token faces potential resistance at the 200-day EMA, and a break above $3,470 could signal a continuation of the uptrend. On the downside, Ethereum could test support near $2,890 if it fails to consolidate above the 20-day EMA.

Bitcoin's price movement is also under close scrutiny, particularly as it approaches the $100,000 level. Analysts at JPMorgan have noted that regulatory developments, such as the implementation of the US 'Clarity Act,' could encourage further institutional adoption and drive Bitcoin prices higher.

The broader market is also watching for signs of continued ETF inflows, which have reversed earlier January outflows and provided a tailwind for Bitcoin and Ethereum. With spot Bitcoin ETFs recording $1.5 billion in inflows over nine trading days in January, the trend of institutional interest shows no sign of slowing.