Bitcoin Wipes Out Gains, Sentiment Sinks To Historic Fear: Analysts
Bitcoin’s recent wobble has traders on edge, but the picture is not all one-way. Reports note heavy losses for late buyers, and on-chain figures show real money changing hands as positions are forced closed. Markets moved fast; the mood did too. Analyst Michaël van de Poppe shared a chart showing Bitcoin’s Sharpe Ratio at -38.4. That metric measures returns relative to risk; a number this low is rare. This is a phenomenal chart. It shows the Sharpe Ratio for #Bitcoin in the short term. The key takeaway: the Sharpe Ratio has dropped to -38.38, which historically has marked “Low Risk” accumulation zones. The red circles highlight every time the Sharpe Ratio dipped to similar… pic.twitter.com/Nwp7SkfVP4 — Michaël van de Poppe (@CryptoMichNL) February 21, 2026 Historically, extreme negative readings have sometimes lined up with moments when buying risk felt lower, because potential downside had been squeezed out by big selloffs. That does not guarantee a rebound, but it changes how investors view the trade-off between reward and risk.Sharpe Ratio Hits Unusual Low
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Where This Could Lead
Some technical watchers warn that more tests of support could happen if uncertainty continues. Others point to the combination of heavy liquidations, deep fear readings, and large realized losses as signals that a base might be forming.
Pasts on-chain figures show that panic and steep losses often precede quieter periods where buyers return slowly.
Featured image from Unsplash, chart from TradingView
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