Bitcoin Enters Weekend With Highest Fear Levels in a Month: Here’s Why That’s Good

Will BTC start to move in the opposite direction of what the crowd expects soon?

With BTC’s price compressed below $70,000 and almost 50% away from its October 2025 all-time high of over $126,000, the overall sentiment within the cryptocurrency community remains deeply negative.

The ongoing war and uncertainty about the fate of the CLARITY Act are also contributing to investors’ grim outlook, but the analysts from Santiment recently revealed that this could be a blessing in disguise.

Record Fear Could Be Good

The analytics company has long been a proponent of Warren Buffett’s immortal advice for investors – be greedy when others are fearful and be fearful when others are greedy. Santiment has explicitly reaffirmed this thesis for the cryptocurrency industry, which is particularly susceptible to overblown emotions.

In the latest post on the matter, the analysts acknowledged that social media platforms such as X, Reddit, Telegram, and others have shown the “highest ratio of bearish discussions (fear) since February 28th” for bitcoin. At the time, the US and Israel first struck Iran, beginning what has now become a prolonged war.

The company added that “FUD has crept back in with the community showing a key lack of optimism,” as social media indicated that this weekend’s ratio of just 0.81 bullish comments per 1.00 bearish ones is “the lowest” since the war began. However, Santiment believes this is “usually a common ingredient for prices rebounding.”

“Remember that markets typically move the opposite direction of the crowd’s expectations. So even with ongoing “what-ifs” that are impacting the market’s ceiling right now (such as the Iran war and Clarity Act), a high level of FUD like this is a good sign that things can turn positive sooner rather than later.”

F&G Index Confirms

Alternative.me’s popular Bitcoin Fear and Greed Index reaffirmed Santiment’s claim that fear continues to dominate the market. Moreover, it has been in an ‘extreme fear’ state for over a month, with a brief exception in mid-March when BTC pumped to $76,000, only to be rejected and pushed below $70,000 within days.

History shows that BTC indeed tends to bounce back following long periods of time spent in ‘extreme fear.’ The same can be said about ‘extreme greed,’ as evident from the chart below. However, the current landscape is mostly influenced by the war against Iran, and FUD might continue as long as there’s no decisive outcome.

You may also like: