Crypto market stays fearful despite new US–China trade deal

The crypto market remains nervous even after the United States and China reached a long-awaited trade deal this week. The widely tracked Crypto Fear & Greed Index showed only a small improvement, rising from 33 to 37 on Sunday, still firmly in “Fear” territory.

Essentially, a low value of the observed sentiment index indicates that traders and investors do not trust the current breakthrough in the geopolitical sphere. A count below 50 indicates a lack of euphoria, and the increase in value reflects the growing trust of participants in the trading community.

Traders are still processing the deal. US-China relations have been shaping both digital and traditional sectors for months, with tariff threats, supply chain disruptions, and tech restrictions fueling concerns about global economic growth.

This agreement has been a significant step forward, but without clarification and sanctions, investors remain cautious. Upcoming political shifts could introduce even stricter rules on intellectual property and information security, adding another layer of uncertainty.

The event resulted in around $19 billion worth of crypto positions being liquidated in less than 24 hours. Recovery has been shaky. Analyst Michael van de Poppe of MN Capital says that the current phase is challenging, but it could, in hindsight, represent one of the markets bottom days. He still notes that the overall momentum remains at the early stages of a potential bull cycle for both altcoins and Bitcoin.