- Santiment took a contrarian view of the market today, saying lingering fear is good.
- The contrarian view suggests that lingering fear enables stable hands the confidence to accumulate crypto and avoid FUD-driven crashes in the future.
- Crypto markets have been hovering around 20 on the Fear and Greed Index since yesterday’s severe crash.
- However, new positive developments like upcoming rate cuts might prop up the market sooner than expected.
Santiment Takes Contrarian View, Expects Stable Recovery
The crypto markets have been in a consistent bearish trend for the past month, with no end in sight. However, Santiment, the leading crypto market tracker, believes this consistent bearishness will weed out novice traders, especially the fickle-handed ones, leaving the market in stable hands.
Last time this had happened was in 2022, when the crypto winter brought in institutional players like MicroStrategy, Metaplanet, and even governments like El Salvador into accumulation. Today, those institutions sit on billions of dollars in profits without selling their investments.
The current market bearishness, which is only expected to last through H1 of 2026, is likely to further strengthen accumulation by whales, large institutions, and other long-term players.
Diamond Hands Accumulating
Bitcoin whales have been accumulating amid market fears of a further selloff. This accumulation is visible on the Realized Cap Chart for Whales as shown below. In the chart below, we can clearly see that there is a very large spike at the end of the chart, indicating a sharp increase in the number of whales in the last few months.
Whales have been accumulating Bitcoin as the bottom shifts higher. Last crypto cycle (2025), the bottom was at $76,000. A few months later, this time the same has shifted higher towards $84,000. Even if prices go below this bottom, they tend to rebound soon.
State of Crypto Markets
Crypto markets have been reeling under a fear zone for a good part of the last month. Since last week, they have been around 30, with the lowest level being hit today at 26.
A positive aspect of this low is that crypto markets tend to recover sooner after hitting a rock bottom.
One positive piece of news that could drive this market recovery is the appointment of a new Federal Reserve Chairman in May 2026, who has been mandated by Trump to bring interest rates below 1.5%, which is a necessity as per the latter.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
