However, the macroeconomic environment remains tense. The price of WTI crude oil temporarily climbed above $108 per barrel in futures trading and continues to hold above the $100 mark. The increase is mainly driven by ongoing geopolitical risks related to tensions surrounding Iran.
At the same time, U.S. stock index futures remain under pressure after American equities recorded their weakest week since October. Rising energy prices and weak U.S. labor market data for February have added additional pressure on financial markets.
Against this backdrop, sentiment in the crypto sector remains highly cautious. The Crypto Fear & Greed Index has dropped to 8 points, placing it deep in the “Extreme Fear” zone. According to data from the analytics platform Glassnode, about 43% of the Bitcoin supply is currently held at a loss.
Whales are selling while retail investors are buying
On-chain data also highlights differences in behavior between large and small market participants. During the recent sell-off triggered by news surrounding the Iran conflict, crypto whales initially accumulated assets but later began taking profits and selling.
At the same time, smaller wallets holding less than 0.01 BTC continue to steadily increase their positions.
The analytics platform Santiment views this pattern as a potential warning signal, noting that market corrections in the past often continued when retail investors were buying while large holders were reducing their positions.
