In total, close to $5 trillion was erased across global markets in a short period, despite the absence of any single major negative headline.
Institutional flows remain weak
Investor demand showed further signs of strain. Bitcoin exchange-traded funds recorded significant outflows in January, reinforcing signs of sustained institutional selling.
Meanwhile, indicators tracking U.S. investor demand showed persistent weakness, showing limited buying support during the downturn.
Sentiment hits extreme fear levels
Market sentiment has deteriorated sharply. The crypto Fear and Greed Index has logged one of its longest stretches of “extreme fear” in recent months, a level often seen during late-stage market drawdowns.
Data from on-chain analytics firms also showed momentum indicators falling to their weakest levels, signaling little near-term bullish conviction.
No clear bottom in sight
Some analysts said Bitcoin is approaching price zones where buyers may begin searching for a bottom, but warned that past cycles show such phases can last months rather than days.
“This is no longer a routine pullback,” one analyst said. “It’s a broad reset driven by forced selling, broken confidence and declining risk appetite.”
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