Matrixport: Crypto Extreme Fear Suggests Incoming Inflection Point

Bitcoin sentiment has dropped to its most pessimistic ranges in years, with Matrixport’s proprietary Greed and Fear Index signaling that promoting stress could also be nearing exhaustion.

The monetary companies agency prompt in its most up-to-date evaluation that the market might be approaching a turning level, at the same time as costs face continued short-term uncertainty.

Sentiment Plummets to Multi-Year Lows

In a chart revealed on February 17, Matrixport revealed that its Greed and Fear Index has fallen under zero on its 21-day common, a zone that in previous cycles appeared shut to cost flooring.

The mannequin tracks modifications in positioning and volatility, and earlier cases of comparable readings typically occurred shortly earlier than markets stabilized. The notice added that costs might nonetheless drop additional earlier than any restoration, although traditionally such pessimistic sentiment typically coincided with what it referred to as “engaging” entry intervals.

“Given the cyclical relationship between sentiment and Bitcoin worth motion, the newest studying suggests the market could also be approaching one other inflection level,” the corporate acknowledged.

Matrixport additionally identified that merchants wanted to watch out, with the present setting demanding they “sharpen” their focus in preparation for “circumstances that usually precede a significant rebound.”

And their name isn’t with out benefit if observable indicators like institutional flows are something to go by. According to Lookonchain, Bitcoin funding merchandise recorded one other week of outflows, with $380 million exiting within the final seven days. In that point, BlackRock’s IBIT hemorrhaged 3,538 BTC, carefully adopted by Fidelity, which noticed over 2,000 BTC price upwards of $143 million withdrawn.

Additionally, whereas BTC was buying and selling across the $68,000 stage on the time of writing, barely slipping within the final 24 hours, the king cryptocurrency is down almost 3% on the week, with steeper drops on longer timeframes, together with a 28% collapse over 30 days and a greater than 40% decline throughout the previous six months, per knowledge from CoinGlass.

Derivatives Contraction Signals

Matrixport’s analysts aren’t the one ones who’ve seen the temper of trepidation out there. Earlier within the month, Alternative.me’s broadly adopted Fear and Greed Index advised the same story, dropping to its lowest stage since 2019, after Bitcoin shaved about $30,000 from its worth in lower than ten days.

Interestingly, knowledge shared earlier at the moment by analyst Darkfost pointed to a different stress level. According to them, open curiosity throughout exchanges has been shrinking steadily for the reason that October 2025 market high, with positions on Binance down about 39% and declines of roughly 33% on Bybit and 24% on BitMEX.

“This setting signifies that buyers are actively decreasing publicity, chopping danger, or being pressured out by means of liquidations pushed by ongoing volatility,” Darkfost defined. “Under these circumstances, it’s tough to examine Bitcoin stabilizing sustainably and reigniting a bullish pattern within the brief time period.”

The put up Matrixport: Crypto Extreme Fear Suggests Incoming Inflection Point appeared first on CryptoPotato.