According to data from Alternative, the Bitcoin Fear & Greed Index has dropped to 9, marking its deepest move into the extreme fear band since the 2022 bear phase. The single-digit reading follows a market pullback that began in the final week of January and coincides with Bitcoin trading near $67,100, about 19% lower over the past seven days. Historically, such depressed sentiment has often appeared around bottom formation zones, though during bear markets the index can remain fearful for extended periods.

On-chain analytics firm Glassnode reports that Bitcoin's entity-adjusted 7-day average Realized Loss climbed to $889 million on Wednesday, the largest single-day loss realization since November 2022. The surge in realized losses accompanied a sharp BTC price decline of more than 21% over the past week, pushing the spot price down to about $66,700 and driving a wave of investor capitulation.

On-chain metrics show the Bitcoin MVRV Z-Score has dropped to its weakest reading in years after the price broke below $80,000. Glassnode analyst Chris Beamish notes the indicator, which compares market cap with Realized Cap, has compressed to levels last observed in October 2023, when BTC hovered around $29,000. While Bitcoin still trades near $76,000 and remains in net profit territory, unrealized and realized gains have both declined sharply.

On-chain analytics firm Glassnode has reported that past sustained Bitcoin uptrends have generally appeared only when a liquidity gauge called the 90‑day Realized Profit/Loss Ratio stayed above a key level. The metric, which compares realized gains to realized losses, peaked near 20 in the second half of 2025 but has since dropped to below 2, while Bitcoin is trading around $87,800 after a recent pullback. Glassnode's data suggests a renewed rally may require this ratio to climb back above 5 and hold there, although the indicator is still trending downward.

An analyst in a CryptoQuant Quicktake notes Bitcoin's Supply in Loss has turned upward, with its 365‑day SMA rising after an October cycle low. The metric tracks the share of circulating BTC held at an unrealized loss, a shift that has previously aligned with early bearish phases. Bitcoin is around $89,000, up over 1% in 24 hours.

According to Glassnode analyst Chris Beamish, Ethereum is currently trading around a dense cost basis cluster near $2,750 that has repeatedly acted as support since the November bottom. The on-chain Cost Basis Distribution shows this zone has triggered multiple rebounds, while Ethereum now changes hands near $2,950, about 1.5% lower over the past week. Beamish argues that holding above this area could signal accumulation and base formation, whereas a breakdown might push the price into regions with thinner support and more at-risk supply.

On January 15, Bitcoin's Fear & Greed Index stood at 61; six days later it plunged to 24, signaling extreme fear, according to Alternative. The indicator, built from market cap dominance, trading volume, volatility, Google Trends, and social media inputs, previously sprinted from 26 to 61 in two days as BTC moved above $97,000. Bitcoin dipped below $88,000 before rebounding to $90,200.

Glassnode said in a post on X that during the November–December bottoming phase, larger entities were the main drivers of Bitcoin supply accumulation while smaller cohorts distributed. Its Accumulation Trend Score showed 10,000+ BTC wallets near 1.0 after the November drop, with 1,000–10,000 BTC holders turning net buyers in December. Bitcoin traded around $88,900 as the week progressed.

Bitcoin fell from $95,500 to a low of $93,000 in the past 24 hours, with altcoins also declining. The sharp move triggered heavy derivatives liquidations, with long positions bearing the brunt, while Ethereum slipped to $3,200. Bitcoin has since edged back to about $93,100.