The sentiment in the Bitcoin market has declined to levels not witnessed since January 2023, as reported by the crypto analytics firm CryptoQuant.
In a report published on Thursday, CryptoQuant disclosed that its Bull Score Index has dropped to 20, indicating that only two out of ten key metrics are currently in bullish territory.
This level represents the lowest figure in over two years and is significantly below the historical threshold required for sustained price appreciation, according to the analytics firm.
The report notes that returning to a prior low creates a “weak environment” for Bitcoin, thereby decreasing the chances of a sustained rally in the near future.
These findings raise important questions about market direction, with CryptoQuant suggesting that this may be indicative of a broader bearish trend rather than just a short-term correction.
The Bull Score Index incorporates ten different metrics that measure network activity, investor behavior, Bitcoin demand, and market liquidity to assess the overall health of the market.
Historically, Bitcoin has needed scores exceeding 60 to support significant price rallies, while extended periods below 40 have aligned consistently with bear markets, as explained by CryptoQuant.
CryptoQuant’s dashboard for this model indicates a considerable decline in on-chain fundamentals since mid-February 2025, with eight metrics currently signaling warning flags.
The Network Activity Index, a vital component monitoring on-chain usage, has remained in a bearish state since December 2024.
If the score “stays below 40 for an extended time,” it may indicate that “bearish market conditions” could persist, challenging the idea that Bitcoin’s recent drop of up to 23% from its recent peak of $109,000 in January represents merely a “temporary correction,” as noted by the analysts in the report.
Additionally, broader factors are influencing the situation. Bitcoin volatility has surged to a six-month high, even though some analysts predict new all-time highs by mid-year, spurred by improving global liquidity conditions.
On Wednesday, the Federal Reserve announced that it would keep interest rates unchanged. Following this news, major crypto markets—including Bitcoin, Ethereum, and Solana—experienced immediate, if modest, gains.
As of the last update, Bitcoin is down 1.8% to $84,400. According to MYRIAD, an on-chain prediction market launched by Decrypt’s parent company DASTAN, 68% of participants believe that Bitcoin will remain above $83,000 before the end of the week.
Edited by Sebastian Sinclair
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