Crypto Fear and Greed Index increased by 17 points, reaching 49, Federal Reserve keeps interest rates unchanged

The Crypto Fear and Greed Index rose by 17 points to reach 49 on March 20, shifting the market sentiment from "Fear" to "Neutral".

Alternative's Crypto Fear and Greed Index measures investor sentiment by assessing market momentum, volatility, Bitcoin dominance, and social media trends. The transition to the neutral zone indicates that investors are neither overly fearful nor excessively greedy.

This improvement in the market came as investors reacted positively to the Federal Reserve’s decision on March 19, which kept interest rates unchanged at 4.25%–4.50%, postponing further cuts due to economic uncertainty.

Fed Chair Jerome Powell acknowledged that inflation is still high and warned that Trump’s tariff policy could prolong the fight against rising prices.

Although the Fed's dot plot forecasts two rate cuts in 2025, Powell admitted that it is difficult to gauge the full impact of tariffs. The central bank has now lowered its GDP growth estimate for 2025 to 1.7%, down from December’s forecast of 2.1%.