BEARISH 📉 : Bitcoin price falls 46% with extreme fear index at 14

Bitcoin's price has seen a significant decline, dropping 46% from its peak of $126,000 to approximately $67,900 after five consecutive months of losses. This has raised questions about whether this is a correction or a deeper downturn.

Key Points

Bitcoin's Fear & Greed Index is at 14, indicating Extreme Fear.
Net realized losses have surpassed $13 billion, similar to the worst periods of the 2022 slump.
Despite roughly $10 billion in inflows in 2024 and over $300 billion in 2025, market cap has decreased, suggesting high selling pressure.
The ongoing capital flow suggests large holders or institutional traders may be selling into demand.
On-chain data shows shrinking realized gains, weakening market internal strength.
Sentiment remains low with extreme fear often preceding capitulation points.
Bitcoin has experienced four consecutive losing months, a streak not seen since 2018.
XWIN Research suggests focusing on who buys and sells rather than just prices, as current conditions indicate a strained balance between supply and demand.
Until inflows lead to sustained market cap growth and reduced realized losses, caution is advised.

Bitcoin appears at a crossroads, with some indicators pointing towards an early crypto winter, based on current data.