The fear and greed index slipped 12 points to 49, signaling a shift in market mood. Bitcoin rose about 5% on the day, trading near $97,870 as professional investors accumulated while retail selling eased, according to Santiment.
However, news that US lawmakers are crafting rules to reshape crypto oversight unsettled traders. The proposal would divide regulatory authority among agencies. Several crypto lobbyists criticized provisions, notably those aiming to tighten returns on stablecoins. Coinbase CEO Brian Armstrong argued that it is better not to enact bad rules than to pass legislation.
With the Senate meeting to discuss the bill either canceled or delayed to late January, market participants feared a potential price drop. Yet some investors, like Kyle Chasse, argued that the market’s resilience in the face of bad news is a positive signal. As of 4:45 PM Korea time on the 16th, Bitcoin traded down about 1.16% from the previous day, around $95,468. Note: Crypto markets remain highly volatile.
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