Amid uncertainty over the long-anticipated U.S. market-structure bill, crypto market sentiment pulled back on Friday after reaching a multi-month high. The Crypto Fear & Greed Index fell 12 points to a neutral reading of 49 out of 100, down from 61, indicating a bullish tone on Thursday.
The index’s score on Thursday was the highest since it hit 64 on Oct 10. It was the same day the crypto market crashed, with an outflow of $61 billion.
Policy Concerns Clouds Market Sentiments
This reading reflected caution among investors who are uncertain about the market structure bill. The bill aims to define how regulators oversee digital currencies.
On Thursday, market sentiment peaked alongside a roughly 5% rally in Bitcoin (BTC). However, concerns quickly arose after several provisions in the Senate version of the bill drew criticism, particularly those affecting stablecoin yields.
According to crypto platform Santiment, “the move appeared more than justified based on continued smart money accumulation, and retail traders dumping.”
Coinbase CEO Brian Armstrong calls the bill “materially worse than the status quo” and withdraws his support. This prompted the Senate Banking Committee to postpone its planned markup.
However, some venture capitalists, such as Kyle Chasse, described the delays as bullish. He noted that Bitcoin held firm despite regulatory uncertainty.
