The cryptocurrency fear and greed index has risen to 40, marking a shift to "neutral" for the first time since October 2025, as reported by ChainCatcher. This change reflects an improvement in investor sentiment following a period of extreme fear, where the index had plummeted to 10 in November 2025. The previous decline in sentiment was triggered by a significant market crash in October, during which Bitcoin's price fell from a record high of $125,000 to $80,000, a 35% drop. Additionally, the altcoin market capitalization saw a 33% decrease in a single day. Despite the recovery in sentiment, ongoing geopolitical tensions and lackluster retail investor interest may present challenges in 2026.