Bitcoin Bullish Sentiment Hits Two-Year Low, Signals Possible Prolonged Downturn

Bitcoin's market sentiment has hit a low not seen since January 2023, according to the crypto analytics firm CryptoQuant.

In a report released recently, CryptoQuant announced that its Bull Score Index has dropped to a score of 20, indicating that only two out of ten key metrics are in bullish territory.

This score is the lowest recorded in over two years and is significantly below the level typically needed to promote sustained price increases, as noted by the analytics firm.

The decline back to this low suggests a "weak environment" for Bitcoin, thereby decreasing the chances of a sustained rally in the near future, according to the report.

These findings raise concerns about the direction of the market, which CryptoQuant suggests could indicate a broader bearish trend that extends beyond a mere short-term correction.

The Bull Score Index from CryptoQuant is based on ten distinct metrics that assess network activity, investor behavior, demand for Bitcoin, and market liquidity to evaluate the overall market health.

Historically, Bitcoin has needed scores above 60 to facilitate significant price rallies. Prolonged scores below 40 have often been linked to bear markets, as explained by CryptoQuant.

According to CryptoQuant's model, there has been a notable decline in on-chain fundamentals since mid-February 2025, with eight metrics currently signaling warnings.

In particular, the Network Activity Index, which tracks on-chain usage, has been in a bearish stance since December 2024.

If the Bull Score stays below 40 for a longer duration, it may indicate that bearish market conditions could persist. This could challenge the idea that Bitcoin's recent decline of about 23% from its peak of $109,000 in January is simply a temporary correction, as analysts in the report pointed out.

Wider economic factors are also relevant here. Bitcoin's volatility has surged, reaching a six-month high. Although some analysts anticipate new all-time highs by mid-year due to improving global liquidity conditions.

On Wednesday, the Federal Reserve announced that it would maintain steady interest rates, leading to a slight uptick in major crypto markets, including Bitcoin, Ethereum, and Solana.

As of now, Bitcoin is trading down 1.8% at $84,400. In an on-chain prediction market created by Decrypt's parent company DASTAN, 68% of participants believe that Bitcoin will remain above $83,000 by next week.

Edited by Sebastian Sinclair

Bitcoin, Sentiment, Market