Crypto sentiment returns to neutral, but liquidity is still not strong enough to confirm a new FOMO phase

📌 The Fear & Greed Index is currently at 50, reflecting a rare balanced state after months of strong market volatility. Compared with 52 yesterday, 47 last week, and 50 last month, overall sentiment has been moving sideways around the neutral zone, showing that investors are no longer panicking but have not entered a euphoric phase either.
🔎 The key point is that the index has recovered sharply from Extreme Fear at 5 in early February to 50 now. This shows that sell-off pressure has eased significantly and market confidence has improved, but it is still not enough to confirm a clear bull market phase.
📊 $BTC remains the center of liquidity as dominance stays elevated around 58–60.5%. This backdrop usually makes it harder for altcoins to rally broadly, as investors still prioritize the leading and more liquid asset during the early recovery stage.
⚠️ Altcoin Season has not shown strong confirmation yet. Some sectors with their own narratives, such as AI, RWA, or DePIN, may attract selective inflows, but most of the altcoin market still needs clearer support from lower dominance and stronger volume.
💡 Overall, crypto is in a cautious recovery zone rather than a FOMO phase. The more reasonable short-term scenario is for the market to keep moving around neutral levels, while traders watch $BTC reaction, stablecoin flows, trading volume, and dominance shifts before confirming a stronger upside move.
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