As the Fear Index remains in the extreme zone, Bitcoin holds $67,000
The Crypto Fear and Greed Index currently reads 11, indicating “high fear”, and the situation has been maintained for 12 consecutive days. Despite a brief recovery between March 17 and March 18, the index has remained in “deep fear” since January 28.
Traders use the index as a contrarian measure to monitor investor sentiment because it incorporates volatility, quantity, social trend and market momentum information.
With that perspective in mind, during previous bull and bear markets, traders interpreted “high fear” readings as opportunities to buy dips, but given how weak the market has been since January, the signal may be wrong.
On X, crypto analyst Rand Group pointed out a mismatch between investor sentiment and the price of Bitcoin. According to the post, the headlines of the US and Israel-Iran war and the increasing concern of US interest rates have raised investor fears, but the silver lining has not increased the selling pressure of Bitcoin, despite the negative market conditions.
Onchain data also shows a stable market. Crypto analyst MAC_D said that the share of short-term holders, especially in the one-week to one-month period, fell to 3.98%. In previous market cycles, readings below 4% coincided with periods when the market was close to bottoming out.
Reduced short-term activity means fewer quick trades and less speculative demand from day traders. Long-term owners now control the largest share of the supply, which indicates accumulation.
Large Bitcoin holders continue to control flows and crypto analyst CW8900 said that the whale ratio of the BTC exchange has risen above 60%, which is the highest level in ten years. Retail presence declined over the same period, reaching its lowest share in that period. The analyst added,
“In general, the whale ratio at the bottom is at its peak. We are now at the lowest level for retail investors in the last 10 years.”
Related: Bitcoin Traders Predict Short-Term Fall As BTC Price Chases $68K
The analyst says that Bitcoin has lost its strength in equity
Bitcoin researcher Axel Adler Jr. said the short-term correlation between Bitcoin and the S&P 500 has weakened, with the 13-week correlation slipping below zero.
The BTC to S&P ratio has trended lower in 2026, continuing to undervalue Bitcoin. Market volatility has remained high, but Bitcoin's price declines have been greater than those of stocks.
BTC's rally to $76,000 on March 17 also failed to develop into a sustained trend. With weak participation from small investors, this ratio suggests that BTC is currently considered a high-risk asset relative to traditional markets.
This correlation with traditional markets, combined with the current level of “severe fear”, could signal a buying opportunity for BTC investors.
Despite Bitcoin's poor performance against the S&P 500, the underlying data tells a different story. BTC selling pressure is not increased by negative market events, and whales increase their dominance as retail investors exit.
These signs suggest that Bitcoin may be quietly entering a reserve phase.
Related: Crypto gains political popularity among 80% of UK youth voters
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