Crypto Sentiment Weakens Sharply in February as Bitcoin Faces Risks of Further Downside
Crypto sentiment has sharply deteriorated, suggesting a potential market inflection point, though Bitcoin faces risks of further near-term decline.Summary
Crypto market sentiment has dropped sharply, with Matrixport's Greed & Fear index reaching extremely depressed levels, signaling a possible market inflection point. Matrixport noted that durable bottoms often follow when the 21-day moving average of this gauge dips below zero and begins to rise, suggesting selling pressure might be exhausting. However, the firm cautioned that Bitcoin prices could still decline further in the near term while preparing for a potential rebound. Concurrently, on-chain indicators like the adjusted Spent Output Profit Ratio (aSOPR) have fallen into a range historically associated with bear market stress and capitulation pressure, resembling prior structural deteriorations rather than simple corrections. Analysts suggest that if aSOPR fails to recover above 1.0, Bitcoin might enter a broader bearish phase, potentially revisiting levels below $40,000 before a durable bottom forms, despite current trading around $68,000.
(Source：BeInCrypto)