{"id":143512,"date":"2026-03-20T00:00:36","date_gmt":"2026-03-20T00:00:36","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=143512"},"modified":"2026-03-20T00:00:36","modified_gmt":"2026-03-20T00:00:36","slug":"crypto-fear-gauge-hits-extreme-level-even-as-traders-bet-on-relief-rally","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=143512","title":{"rendered":"Crypto Fear Gauge Hits Extreme Level Even As Traders Bet On Relief Rally"},"content":{"rendered":"

Bitcoin\u2019s fear gauge plunged back into \u201cExtreme Fear\u201d<\/a> on Wednesday \u2014 the same day traders flooded social media with bullish calls following the US Federal Reserve\u2019s decision to hold interest rates steady.<\/p>\n

Sentiment Shoots Up Despite Grim Market Signals<\/h2>\n

The Crypto Fear & Greed Index, a widely tracked measure of overall market mood, had briefly climbed into plain \u201cFear\u201d territory the day before, only to reverse course hours later.<\/p>\n

Yet traders appeared unfazed. According to sentiment platform Santiment<\/a>, bullish chatter on social media spiked hard after the Fed announced it would keep rates unchanged at 3.5\u20133.75%.<\/p>\n

The platform\u2019s social media discussion score shot from roughly nine to 71 within hours of the announcement.<\/p>\n

Bitcoin itself told a different story. It was trading<\/a> at around $70,150 at the time of the Fed\u2019s announcement, down more than 4% in the prior 24 hours.<\/p>\n

Today\u2019s FOMC meeting has resulted in the expected outcome of interest rates holding steady at 3.50-3.75%. There is an expectation that there will be one further cut sometime in 2026, and one in 2027.<\/p>\n

For now, traders are expecting a bullish relief rally in spite of no\u2026 pic.twitter.com\/oBqLTcv3Ni<\/a><\/p>\n

\u2014 Santiment (@santimentfeed) March 18, 2026<\/a><\/p>\n\n

Traders See Rate Hold As A Window For Gains<\/h2>\n

Santiment attributed the surge in positive sentiment to a simple shift in trader thinking. The bearish price action tied to the absence of rate cuts had already played out a day earlier, the platform said, leaving room for traders to reframe the unchanged rate decision as a net positive.<\/p>\n

Holding rates steady, the logic goes, at least keeps the door open for cuts down the road.<\/p>\n

Fed policy<\/a> has long shaped how crypto market participants read the broader economic environment. Rate cuts, in particular, are seen as fuel for risk assets like Bitcoin<\/a>.<\/p>\n

Reports indicate traders had been watching the Fed\u2019s moves closely throughout 2025 as a potential trigger for a bull run that never fully materialized.<\/p>\n

The S&P 500 has shed 3.70% over the past 30 days, according to Google Finance data, adding pressure to an already skittish crypto market.<\/p>\n

Analysts Warn A False Rally Could Be Taking Shape<\/p>\n

Not everyone is buying the optimism. Onchain analysts warned that what looks like an uptrend could be a bull trap \u2014 a false signal that draws buyers in before prices reverse lower.<\/p>\n

Some market observers expect Bitcoin and the broader market to stage a sharp rally once equities find a floor. Others made a similar call earlier this week, saying on X that a \u201cmassive rally\u201d is coming in the months ahead.<\/p>\n

The divide among analysts reflects how unsettled conditions remain. Social media buzz has spiked, but the fear index says something else entirely. Whether the rally traders are counting on shows up \u2014 or fades before it starts \u2014 remains an open question.<\/p>\n

Featured image from Unsplash, chart from TradingView<\/em><\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin\u2019s fear gauge plunged back into \u201cExtreme Fear\u201d on Wednesday \u2014 the same day traders flooded social media with bullish calls following the US Federal Reserve\u2019s decision to hold interest rates steady. Sentiment Shoots Up Despite Grim Market Signals The Crypto Fear & Greed Index, a widely tracked measure of overall market mood, had briefly […]<\/p>\n","protected":false},"author":0,"featured_media":143513,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-143512","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/143512"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=143512"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/143512\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/143513"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=143512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=143512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=143512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}