Cryptocurrency fear and greed index remained on Wednesday at 26, after rising to 28 a day earlier, ending a 48-day stretch of indicators in the “extreme fear” zone.
The Crypto Fear & Greed Index tracks market sentiment based on volatility, momentum, volume and social data. Any reading below 25 signals extreme concern, while higher values reflect increasing risk appetite.
The index reading points to an improvement in market sentiment this week, marking the first exit from extreme fear in over six weeks.
The move coincides with a recovery in total cryptocurrency market capitalization, which increased by 7.65% in March, equivalent to approximately $174 billion. This marks the first monthly expansion since September 2025. Earlier, the market fell almost 40% to $2.28 trillion from $3.65 trillion in the previous five months.
Market researcher Sminston With provided that additional context for the fear and greed index.
With that said, analysis of previous Bitcoin market cycles shows that buying BTC during fear phases provided higher profits over a two- to four-year period.
Average gains reached 331% over three years, compared to 100% for BTC entries made during the greed phases. However, over longer periods (four to five years), the return gap narrowed and both entry strategies converged as Bitcoin’s long-term uptrend dominated price action.
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The enhance in stablecoin inflows signals the return of liquidity
Binance exchange flow data shows change in capital flow. Binance recorded an inflow of $2.2 billion in Tether USDt (USDT) on March 18, marking the largest single-day stablecoin deposit since November 2025.
These inflows represent available capital, often referred to as “dry powder”, that can be deployed in cryptocurrency markets. The jump coincided with Bitcoin prices rising near $75,000 on Monday, combining an injection of liquidity with busy trader positioning.
Meanwhile, total stablecoin reserves on exchanges rose to $68.5 billion from a six-month low of $64 billion on March 8, a edged enhance of 7% in the miniature term.
An enhance in the number of stablecoins held on an exchange typically signals that participants are preparing to deploy funds in the spot or derivatives markets. This means that investors are re-entering the market with the intention of taking a position, which increases short-term purchasing power.
Related: Cryptocurrency purchases enhance in Australia, but so do banking blocks: survey
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