Essential Insights
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Bitcoin (BTC) has experienced a prolonged downturn over the past two months, raising concerns about the end of its bull cycle and the potential onset of a bear market.
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CryptoQuant’s Bitcoin Bull Score Model indicates predominantly bearish conditions, with only 2 out of 10 key metrics signaling bullish sentiment, primarily related to Stablecoin Liquidity and Technical Signal.
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The Bull Score, currently at 20, is the lowest level since January 2023, suggesting a weak investment environment and low likelihood of a sustained price rally in the near future.
- Key metrics have shown a bearish trend since mid-February 2025, indicating a significant reduction in market activity and suggesting that Bitcoin’s bull cycle may be over.
Bitcoin’s Bull Cycle Over? This Critical Metric Says It Might Be
Bitcoin’s prolonged downturn has led to questions about whether its bull cycle has ended. Over the past two months, the cryptocurrency has struggled, prompting analysts to scrutinize key metrics for answers. A recent report from the market intelligence platform CryptoQuant highlights the Bitcoin Bull Score Model as a vital tool for understanding market conditions.
The Bull Score Model analyzes nine on-chain indicators alongside one market metric to evaluate Bitcoin’s investment environment. Each metric receives a score of either 1 (bullish) or 0 (bearish). These indicators reflect various aspects of market activity, including network usage, liquidity, and trader behavior. Currently, only two out of ten metrics – Stablecoin Liquidity and Technical Signal – show bullish signs, indicating a largely bearish market.
CryptoQuant emphasizes the importance of these indicators. "We can observe that the metrics have switched between bullish and bearish phases multiple times," the report states. It notes that the current metrics have turned alarming shades of red, particularly since mid-February 2025. Such a widespread bearish trend suggests weak fundamentals, making a recovery difficult.
Some critical metrics have shown bearish trends for months. For example, the Network Activity Index has been down since December 2024, implying reduced network engagement. This lack of activity correlates with the overall market sentiment, as the Bull Score Model currently sits at 20, the lowest level since January 2023.
When Bitcoin has previously thrived, the Bull Score marked values of 60 or higher. However, values dipping below 40 often lead to significant downturns. With the current score at an alarming 20, many market participants may find little reason to expect a rally soon.
Despite the bleak outlook, Bitcoin retains its uniqueness as a decentralized currency. It has the potential to solve various financial dilemmas, such as providing access to banking for the unbanked and fostering secure transactions without intermediaries. However, until market conditions improve, optimism around Bitcoin’s short-term trajectory may remain cautious.
Investors should stay informed and consider multiple factors before making any decisions. Technology and investment landscapes are ever-changing, and Bitcoin’s ability to adapt will determine its future impact in the financial world.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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