That swing moved the gauge from “greed” into a “neutral” zone in a single session. Bitcoin had jumped about 4.5% earlier in the week to roughly $97,700, which helped push sentiment higher, but the focus shifted toward politics and lawmaking in Washington.
Regulatory Concerns Shake Markets
After the backlash, the Senate Banking Committee cancelled its planned markup and the Senate Agriculture Committee moved its session to late January while lawmakers seek more support.
Social Media Sentiment Shifts As Traders ReactSocial chatter began to reflect worry after the regulatory news, even as on-chain data showed accumulation by more experienced wallets.
The index’s peak earlier in the week was the highest since it reached 64 on October 10, the same day a market crash triggered over $19 billion in liquidations. Those past losses still hang in investors’ memories.
Smart Money Buys While Retail SellsThat small move shows market resilience, yet the sentiment measure’s drop demonstrates how fragile confidence can be when policy doubts emerge. Many traders watch Washington closely, sometimes even more closely than charts.
Delay Seen As Chance By Some Industry PlayersA segment of the industry read the postponements as constructive.
David Sacks, who advises on crypto matters at the White House, said the pause could help close gaps between stakeholders and bring the bill closer to something workable.
Brad Garlinghouse, CEO of Ripple, kept engaging with lawmakers and described the delay as an opening to improve the text.
Those views contrast with more alarmed voices and help explain the mixed market reaction.
Featured image from The Drive, chart from TradingView
