Bitcoin Fear Index Hits 13 as ₱18.17 billion ($300 million) in Longs Liquidated
Extreme fear gripped crypto markets as the Bitcoin Fear and Greed Index crashed to 13 on March 27. The reading coincided with broader risk-off sentiment across equities and energy markets, driven by geopolitical tensions between Iran and the United States.
Key Takeaway
Extreme fear at 13 historically marks accumulation zones — contrarian strategies beat buy-and-hold at these levels.
The Bitcoin Fear and Greed Index crashed to 13 on March 27, marking one of the most extreme sentiment readings in recent months.
The index measures investor sentiment on a scale from 0 to 100, using price volatility, market momentum, trading volume, Bitcoin dominance, social sentiment, and Google Trends activity. Bitcoin Magazine posted the reading on social media with a Warren Buffett quote: "Be greedy when others are fearful."
Bitcoin traded near ₱3,997,362 ($66,000) after falling to its lowest level in more than two weeks. The price has been trapped between ₱3,633,966 ($60,000) and $75,000 for several weeks, well below the late 2025 peak above $120,000. Short liquidations were far lower, showing that leveraged bullish traders took the brunt of the selloff, with over ₱18.17 billion ($300 million) in long positions wiped out.
The panic came as broader markets turned risk-off. Nasdaq 100 futures dropped roughly 10% from prior highs, while oil prices pushed toward $100 per barrel on concerns about the Strait of Hormuz. Geopolitical tensions between Iran and the United States fueled the uncertainty, though the US delayed direct escalation while negotiations remained open. Bitcoin briefly rallied earlier in the week when Iran signaled a push for a full end to the conflict, but reversed as hopes faded.
Spot Bitcoin ETFs recorded billions in inflows earlier in March, but more recent sessions saw outflows as the macro environment soured. Options markets are watching about ₱847.93 billion ($14 billion) in expirations, with a key strike level around $75,000. Goldman Sachs released a report on March 26 titled "Crypto and Bitcoin Might Have Bottomed," suggesting the worst could be over.
A contrarian trading strategy tested since February 2018 that buys 1% of capital when the Fear and Greed Index is 20 or below and sells 1% when 80 or above outperformed buy-and-hold investing. Long-term holders continued moving Bitcoin to self-custody and withdrawing from exchanges, a pattern that historically signals accumulation during extreme fear zones, with withdrawal activity accelerating since March 27.
This article was written based on reporting from Bitcoin Magazine.
