The Cryptocurrency Fear and Greed Index has recently risen to 44, indicating that market sentiment is easing, but the actual trading activity on the front end is not yet so optimistic.

The index climbed from the low 30s to 44, just crossing into the "Fear" boundary, still a fair distance from the true neutral zone. Last week, BTC's volatility decreased by 20%, while on-chain trading activity actually increased. What about institutional investors? They are still on the sidelines, seemingly waiting for a confirmation signal, with no significant large-scale entry yet.

Some subtle changes can be observed in the details. TVL on ecosystems like SOL and AVAX is quietly rebounding, but mainstream cryptocurrencies are still oscillating around their 30-day moving averages, without a clear breakout. This suggests that funds are not fully optimistic, but are only moving in certain niche areas.

A point to watch is next week's Federal Reserve interest rate decision. The current market resembles a brief silence before a roller coaster starts—seemingly calm but with underlying currents. Historical data shows that when the index was at 35, there were three days with a 15% increase, but more often it was sideways consolidation. The index reflects sentiment, not price direction, and this distinction is very important.

Overall, we are currently in a typical bear market recovery phase—sentiment slightly improving, but funds still on the sidelines. The index numbers don't seem as scary anymore, but real institutional capital has not yet made a significant move. The market is waiting for a more definitive direction.