Recently, the crypto market's **Fear and Greed Index has risen from 26 (Extreme Fear) to 33 (Fear), indicating that investor sentiment has warmed up. At this moment, former U.S. President Donald Trump’s **latest statement has once again brought new discussion topics to the market.
Trump's high-profile bullish stance, is Bitcoin welcoming policy benefits?
Recently, Trump has expressed a relatively positive attitude towards virtual currencies in public, especially within the Republican Party, where his voice holds significant influence. He clearly stated in 2019 that he was “not a fan of Bitcoin,” but his attitude has changed significantly in recent years.
In his latest speech, Trump stated, **“We must ensure that America is at the forefront of cryptocurrency,”** and criticized the Biden administration's strict regulations. This statement was interpreted by the market as a signal that U.S. policy may shift towards being more crypto-friendly, leading to a wave of emotional recovery in the crypto market.
The rise of the Fear and Greed Index, is it a signal of market recovery?
The Fear and Greed Index is an important indicator of market sentiment, typically divided into the following ranges:
• 0-24: Extreme Fear — The market may be oversold, presenting a rebound opportunity.
• 25-49: Fear — Investors remain cautious, but the market begins to warm up.
• 50-74: Greed — Increased capital inflow, market sentiment is relatively optimistic.
• 75-100: Extreme Greed — It may be in a bubble risk zone, caution is advised for chasing highs.
The current index has risen from 26 to 33, indicating that market panic is weakening, and some investors are beginning to return to the market. Combined with Trump's remarks, the market may be in an emotional recovery period, especially mainstream assets like Bitcoin (BTC) and Ethereum (ETH) may receive more attention from funds.
Will the market enter a new round of bull market?
Although sentiment has warmed up, whether the market can enter a bull market still requires attention to the following key factors:
1. Changes in U.S. Regulatory Policy — If Trump's or the Republican camp's influence continues to rise, the crypto market may welcome a more relaxed regulatory environment.
2. Federal Reserve Monetary Policy — Whether the Fed will cut interest rates by the end of 2024 to early 2025 will affect market liquidity.
3. Bitcoin Spot ETF Capital Inflow — Whether ETF holdings continue to grow will be a key indicator of market strength.
4. Market Sentiment and Technical Analysis — The current index is still in the fear zone, and the market has not completely shaken off the bearish sentiment.
Conclusion: Are opportunities quietly emerging?
The rebound of the Fear and Greed Index, combined with Trump's friendly policy signals, has indeed boosted market confidence in the short term. However, investors still need to pay attention to the macro environment to avoid blind optimism. In the coming months, if the index continues to rise and breaks above 50, it may truly enter a new round of upward cycle.
In the short term, the market may be transitioning from 'fear' to 'cautious optimism,' but to confirm the return of a bull market, more policy and capital support is still needed.
