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Crypto Fear Index Hits 9, But Analysts See Structural Support
The Crypto Fear & Greed Index hit 9, its lowest since 2022. But onchain data shows shallower drawdowns than prior cycles, with 10.46M BTC at a loss — a historic bottom signal.
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The Crypto Fear & Greed Index dropped to 9 on Monday, its lowest reading in months and a level that signals extreme fear across digital asset markets. Bitcoin traded at $63,106, down from nearly $83,000 earlier this year, after a sharp retracement that flushed out overleveraged positions.
Yet beneath the sentiment collapse, several data points suggest the market structure is holding up differently than in prior downturns. River data shows Bitcoin's current 50% drawdown from its all-time high is significantly shallower than the 80% average correction seen in previous bear cycles. The firm attributes that compression to growing institutional participation, which has introduced a permanent structural bid.
Onchain metrics tell a similar story. Ali Martinez noted that Bitcoin is nearing the end of its distribution phase and entering a major macro accumulation cycle. The recent selloff saw long-term holders distribute $3.25 billion in spot supply and transfer 54,000 BTC onto exchanges over two weeks. That supply overhang has largely cleared, Martinez said.