How Bitcoin Sentiment Falls to Lowest Level Since 2022

Bitcoin’s bullish sentiment has tumbled to its lowest level in over two years, painting a cautious picture for the months ahead despite prices holding steady above $60,000. This unexpected dip in optimism comes on the heels of Bitcoin reaching an all-time high of $73,737 on March 14, 2025, only to witness a sharp pullback that has unsettled traders and investors alike.

According to blockchain analytics firm Santiment, the platform’s Weighted Sentiment Index turned deeply negative this week, marking the most pessimistic reading since September 2022. While Bitcoin’s price has managed to stay relatively resilient, the mood in the crypto community tells a different story.

“The euphoric tone that defined early March has all but evaporated,” said a Santiment analyst. “We are now seeing fear and uncertainty creep in, despite the price still sitting comfortably above $60,000.”

The Fear and Greed Index, a popular metric gauging investor emotions, also plummeted to levels last seen in March 2023. The indicator, which had lingered in the “greed” zone for much of February and early March, is now drifting toward the “fear” territory, suggesting a broader market cooldown may be underway.

ETF-Driven Momentum Wanes Amid Profit-Taking

Bitcoin’s historic rally earlier this month was largely fueled by substantial inflows into U.S. spot Bitcoin ETFs, which began trading in January. Major players like BlackRock and Fidelity drove billions into the crypto market, igniting a surge of retail and institutional buying.

However, the rapid climb to new highs may have also sown the seeds of the current pullback. With Bitcoin briefly touching nearly $74,000, many investors seized the opportunity to take profits. This wave of selling pressure appears to have dampened the previously exuberant sentiment.

Analysts at CoinShares noted that while ETF flows remain positive, the pace has slowed significantly.

“We’re seeing a shift from aggressive accumulation to cautious rotation,” said CoinShares research head James Butterfill. “Investors are digesting gains and re-evaluating risk exposure in light of the recent volatility.”

On-Chain Metrics Signal Market Caution

Beyond sentiment indicators, on-chain metrics are also flashing yellow. Glassnode data shows a decline in the number of active Bitcoin addresses and a drop in transaction volume, both of which often precede market corrections. Exchange inflows have risen as well, suggesting that some holders are preparing to liquidate positions.

Despite this, some analysts believe the market remains structurally sound. “A cool-off phase is not unexpected after such a sharp move up,” said Ki Young Ju, CEO of CryptoQuant.

“The macro narrative for Bitcoin—particularly as a hedge against inflation and a store of value—remains intact.”

Macro Factors May Hold the Key

Looking ahead, Bitcoin’s trajectory may depend heavily on macroeconomic developments. The Federal Reserve’s monetary policy stance, inflation data, and broader risk sentiment across global markets will likely shape Bitcoin’s next major move. If rate cuts arrive later than expected or if economic uncertainty increases, Bitcoin could face sustained headwinds.

Still, many remain optimistic about the long-term prospects. “Market sentiment is just one piece of the puzzle,” noted Bloomberg Intelligence analyst Jamie Coutts.

“Bitcoin has matured significantly in recent years, and short-term emotional shifts don’t necessarily dictate long-term value.”

Conclusion on Bitcoin Sentiment

While Bitcoin’s price continues to trade above $60,000, investors’ mood has grown noticeably cautious. Profit-taking, slowing ETF inflows, and concerning on-chain signals have triggered a dip in bullish sentiment to levels not seen in over two years. Whether this signals a prolonged downturn or merely a healthy consolidation remains to be seen, but for now, the optimism that once fueled Bitcoin’s record-breaking rally has taken a back seat.

FAQs

What is causing the drop in Bitcoin sentiment?

The decline in sentiment is largely driven by profit-taking after Bitcoin’s recent all-time high, slowing ETF inflows, and bearish on-chain data, including reduced transaction volumes and increased exchange inflows.

Has Bitcoin’s price dropped significantly?

Despite the negative sentiment, Bitcoin has held relatively steady, trading around the $63,000 mark at the time of writing, down from its March 14 high of $73,737.

Are ETFs still supporting the market?

Yes, but the pace of ETF inflows has slowed. While they remain positive, the initial excitement appears to be tapering off as investors adopt a more cautious stance.

What could reignite bullish sentiment?

Potential catalysts include a dovish shift in Federal Reserve policy, stronger ETF inflows, and improved on-chain activity. Clear macroeconomic signals could also help renew investor confidence.

Glossary of Key Terms

Weighted Sentiment Index – A measure by Santiment that combines positive and negative mentions of an asset across social media and forums to gauge investor mood.

Fear and Greed Index – An index that quantifies investor emotions, ranging from extreme fear to extreme greed.

ETF (Exchange-Traded Fund) – A type of investment fund traded on stock exchanges, which in this case, holds Bitcoin as the underlying asset.

On-chain Metrics – Data points derived from blockchain activity, such as transaction volume, active addresses, and exchange flows, are used to assess market trends.

Exchange Inflows – The amount of cryptocurrency moving into exchanges is often seen as a sign that investors may be preparing to sell.

References

Decrypt 
cryptoquant.com
bloomberg.com