Bitcoin slides into extreme fear as crypto capitulation surges

Interest in crypto capitulation fears is on the rise as Bitcoin sentiment tumbles into extreme fear territory. Google Trends shows “Crypto capitulation” searches rocketed from 11 to 58 in just a week.

The widely-watched Crypto Fear & Greed Index, which measures market sentiment on a scale from 0 (extreme fear) to 100 (extreme greed), has slumped into “extreme fear” territory, with readings as low as 7–11/100 in the past week.

Bitcoin has erased much of its recent gains after plummeting to around $60,000 — its lowest level since late 2024, including those accumulated since the 2024 U.S. election cycle.

More retail investors are also monitoring the crypto market for bottoming signals to time their next purchases, according to Crypto research platform Santiment. In its Saturday report, it detailed: “Retail traders are trying to meta-analyze the market, looking for signs of others quitting to time their own entries, which often happens near bottoms.” The platform noted that these investors’ actions are tied to “capitulation,” becoming a hot topic on social media.

However, Santiment points out that most market observers hoping for capitulation signals might not see it, and that the market bottom may have already passed.

Crypto analyst Franzen says capitulation was the topic of the week

According to the crypto analytics platform CryptoQuant, Bitcoin is trading at just half its all-time high. It even warned of 70–80% drawdowns for Bitcoin, but the more concerning risk is investors’ cashing out their positions rather than price declines, noting “It’s not just how low it goes, but how long it stays there.”

Since early this month, searches for crypto capitulation on Google have increased by 427%, as investors try to sell their assets. Caleb Franzen, a market analyst, also noted on X that “Capitulation” was the top topic in this week’s discussions. However, he asserted that bear markets often experience multiple capitulations before the real bottom emerges. He also shared a chart of capitulation events in 2022, though some X commenters disagreed with his data, noting that some of them were just price dips.

Historically, traders have avoided calling a bottom too early, as past cycles show that prices can keep falling after optimism returns. Though at the moment, crypto sentiment is also down to 7, reading extreme fear. Santiment data also shows that the ratio of positive to negative comments has fallen sharply, with negative commentary at its highest level since December 1. 

Santiment hints that the current BTC market price could be a real bottom

In its report, Santiment also stated that Bitcoin on-chain metrics are now showing a rare “blood in the streets” buy signal, especially since the cryptocurrency plunged to $60,000 and has only partially recovered.

It also suggested that with over $15B in leverage lost, funding rates turning negative, MVRV showing holder profits at a 3-year low, this could be a real bottom for the asset and not just a dead cat bounce. Nonetheless, the platform’s team noted that they are observing the market’s ability to sustain key support levels to assess if it remains a favorable buying zone. Meanwhile, BTC’s decline has put Michael Saylor and Strategy in investors’ focus, but their commitment to their crypto strategy remains firm. 

The top asset still has high social media dominance. However, Ethereum continues to see low social dominance even as its price slips below $2,000, with Bitcoin drawing most of the attention. Such periods of social media neglect often point to a buying opportunity.

Aside from capitulation, Santiment showed discussions around liquidations and political news involving Trump and Kevin Warsh are surging. Normally, when liquidation terms trend and actual liquidations increase, it indicates a bottom as over-leveraged traders are flushed out. Bitcoin’s open interest has recently shed over $15 billion, marking a big reset in leverage. 

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