Crypto Sentiment Plunges as Bitcoin Faces Risk of Further Downside

Crypto market sentiment has plunged to extreme lows, with Matrixport's Greed & Fear index reflecting broad-based pessimism. The firm's 21-day moving average of its Bitcoin gauge has dipped below zero, a setup that historically precedes durable bottoms when the average begins to turn upward.

Matrixport cautioned that selling may not be finished and that prices could still fall before recovery. The firm added that the current environment is forcing a sharper focus on conditions that typically precede a meaningful rebound. On-chain indicators underscore the stress.

Analyst Woominkyu said the adjusted Spent Output Profit Ratio has fallen into a 0.92–0.94 range that coincided with past bear-market pressure in 2019 and 2023. If the metric fails to recover above 1.0, the analyst warned, the probability of a broader bearish phase rises and a true bottom may require deeper compression and peak loss realization.

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