- Bitcoin and Ethereum have led the wider crypto market in a bearish outlook.
- The crypto fear and greed index shows extreme fear of further capitulation amid low demand from whales.
- Historically analysis signals the ongoing crypto winter may extend for several months before a macro bullish rebound.
The crypto market has extended its losses led by Bitcoin (BTC) and Ethereum (ETH). The total crypto market cap dropped 1.19% in the past 24 hours to hover about $2.27 trillion on Friday, February 14, during the mid-London session.
Despite top Digital Asset Treasuries (DATs) holding through the bearish windstorms, Bitcoin and ETH prices dropped 2% in the past 24 hours to trade at about $66,215 and $1,937 respectively. As such, CoinMarketCap’s Fear & Greed Index has dropped to hover about 8/100, signaling extreme fear of further capitulation.
Why is the Crypto Market Down Today?
Heightened selling pressure from U.S. investors
The crypto market has continued to experience a bearish outlook largely fueled by the low demand from investors in the United States. According to market data analysis from CryptoQuant, the Bitcoin Coinbase Premium Gap has experienced its longest negative period since November 2024, signaling heightened selling pressure from crypto investors in the United States.
The intense selling pressure in the United States has been influenced by the delayed regulatory process of the Clarity Act in the Senate. Meanwhile, the DATs, led by Strategy and BitMine, have significantly reduced their buying pressure amid their notable unrealized losses.
Extreme fear of capitulation due to macro bearish outlook
The crypto market has also experienced a bearish outlook as traders weigh on the four-year cycle. According to market data analysis from CryptoQuant, Bitcoin is potentially in its consolidation phase after a prolonged selloff since President Donald Trump took office in early 2025.
Notably, Bitcoin’s MVRV ratio has dropped to around 1.1, thus suggesting the flagship coin is nearing the undervalued peak. Historically, if Bitcoin’s MVRV ratio dropped below 1 coincided with the peak of its macro bear markets.
What’s Next?
The crypto market rout is expected to continue in the coming months amid low optimism. On Thursday, Standard Chartered slashed its Bitcoin price target for 2026 to $100,000 from $150,000 and cautioned investors of a potential Bitcoin price drop to $50k in the near term.
This bank cited notable ETF outflows, a weaker macro backdrop, and delayed Fed rate cuts as key risks. Moreover, the crypto regulatory process in the United States has slowed down due to bipartisan woes regarding stablecoins yield on the Clarity Act.
From a technical analysis standpoint, Bitcoin price is likely to lead the wider crypto market in a fresh selloff akin to the end of 2022 before a fresh bull rally.
Related: Bitcoin to $1M? Fred Krueger Cites Institutional Capital Wav
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Source: https://coinedition.com/crypto-rout-deepens-amid-extreme-fear-of-more-selloff-whats-next/
