We view the sharp rebound in the Crypto Fear and Greed Index to 20 as an early sign that sentiment is beginning to stabilize after a period of intense volatility.

Extreme fear appears to be bottoming out, creating the conditions for renewed investor confidence as markets recalibrate.

At the same time, the surge in expectations for a December Fed rate cut, now priced above 80 percent, introduces a distinctly dovish macro backdrop.

That shift could inject much-needed liquidity into risk assets, lowering borrowing costs and potentially sparking a broader risk-on rally across crypto and traditional markets alike.

This push and pull between lingering caution and improving monetary conditions may produce choppy trading in the near term, but it also sets the stage for more sustained upside if adoption metrics continue to strengthen.

It is the kind of environment where innovation accelerates and where investor attention gradually transitions from fear-driven selling to strategic accumulation.

Key signals to monitor over the coming weeks include Bitcoin dominance, changes in altcoin trading volumes, and major macro indicators such as CPI releases.

These data points will help confirm whether the dovish macro shift has staying power and, in turn, whether the market is primed for a more decisive recovery.

Gracy Chen, CEO at Bitget

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