Cryptocurrency sentiment returns to a neutral state, but liquidity remains insufficient to confirm a new FOMO phase.

📌 The fear and greed index is now at 50, reflecting a rare balanced state after months of strong market volatility. Compared to 52 yesterday, 47 last week, and 50 last month, overall sentiment has been moving sideways around the neutral zone, indicating that investors are no longer going crazy but have not entered a euphoric phase either.
🔎 The key point is that the index has sharply recovered from extreme fear at 5 in early February to 50 now. This indicates that selling pressure has eased significantly and market confidence has improved, but it is still not enough to confirm a clear bullish market phase.
📊 $BTC The liquidity stance remains high as dominance stays around 58–60.5%. This situation generally makes it difficult for altcoins to experience broad recoveries, as investors still prefer leading and more liquid assets during the early recovery phase.
⚠️ The altcoin season has not yet shown strong confirmation. 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 declining dominance and increasing volume.
💡 Overall, cryptocurrencies are in a cautious recovery zone rather than a FOMO phase. The most likely short-term scenario is that the market continues to move around neutral levels, while traders watch $BTC the reaction, stablecoin flows, trading volume, and shifts in dominance before #i .