Fear and Greed Index at Neutral: What to Expect After 500M USDT Transfer

Over 500 million USDT tokens were transferred to Binance.
The Fear and Greed Index has fallen to 54 on Friday from 63 on Thursday.
Bitcoin is expected to reach its final peak for this cycle in mid-January.

The Crypto Market Fear and Greed Index currently reads 54, indicating a neutral sentiment among investors. This reflects an even balance between buyers and sellers as many traders take profits following Bitcoin’s recent rally. Over the last 24 hours, BTC faced rejection near the $100,000 level, with investors now focusing on the continuation of the bull run in 2025.

As per CoinMarketCap data, the Fear and Greed Index has declined from 63 (Greed) on Thursday and a peak of 85 (Extreme Greed) last month. The yearly high for the Index stood at 92 on March 12.

In the past day, Bitcoin rebounded from its daily low of $95,137.89 and attempted to surpass $100,000, but the attempt failed. At the time of writing, BTC trades at $96,224.31.

Whale Activity May Influence Market Sentiment

It is important to note that Neutral sentiment could shift, as 500 USDT tokens were transferred to Binance from an unknown wallet, according to Whale Alert on X (formerly Twitter). This transfer suggests a whale may be preparing to open a buying position, though it remains unclear which asset they will target.

January Expected to Be Bullish for Bitcoin

An inflow of $500 million following Bitcoin’s rejection at $100,000 could provide a significant advantage to the wallet owner, as January is expected to be a bullish month for BTC. According to Morningstar, the average cycle length between Bitcoin’s first and last all-time high is 318 days. Since BTC first hit a record high on March 5, the next peak could occur around January 17, 2025, concluded a report from Morningstar.

Vetle Lunde, head of research at K33, suggests that if Bitcoin doesn’t hit its peak by January 17, there is a strong possibility it will reach its cycle high on January 20, coinciding with U.S. President-elect Donald Trump’s inauguration day.

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