Bitcoin's correlation with stock markets has reversed in March, as geopolitical tensions and economic uncertainties drive both markets into extreme fear. The Crypto Fear & Greed Index has returned to "extreme fear," mirroring a similar drop in the stock market's sentiment index. This alignment of fear across both markets is rare and signals broader market stress, according to on-chain data platform Alphractal. The shift comes amid escalating tensions in the US-Israel-Iran conflict and the disappearance of expectations for global rate cuts. The Kobeissi Letter reports that 52% of retail investors now hold a bearish outlook for the next six months, the highest since May 2025. Analyst Tony Severino warns that the positive correlation between Bitcoin and the S&P 500 could indicate an impending market crash, with Bitcoin potentially following suit. BeInCrypto's analysis suggests Bitcoin could fall to $65,000 if it breaks the $68,000 support level.