Bitcoin’s latest pullback has become the deepest correction of the entire bull cycle, and sentiment just hit rock-bottom panic levels.
BTC $92,093 suffered a 26.7% drawdown on Monday, surpassing April’s 26.5% decline and officially becoming the most severe correction of the current market cycle. Multiple indicators are flashing red, yet the overwhelming fear may be the exact signal that the selling is nearing exhaustion.
Key Takeaways
• The 26.7% drop is now the biggest correction of this bull run.
• Crypto Fear & Greed Index plunged below 10 before rebounding to 11, deep “Extreme Fear” territory.
• Historically, readings this low have been one of Bitcoin’s strongest contrarian buy signals.
Extreme Fear Returns — And History Loves It
On-chain researcher Axel Adler Jr. noted that the local market stress index spiked during Monday’s rout, briefly touching 67.82 (above the 64 “WATCH” threshold) before easing slightly. Realized volatility hit a 4.55 Z-score at the worst moment, confirming intense short-term pressure.
Sentiment tells an even clearer story. The Crypto Fear & Greed Index crashed below 10 for the first time since early 2023 before recovering modestly to 11, still firmly in Extreme Fear.
READ ALSO: Bitcoin Futures Refuse Capitulation Despite $89K Dip
Whenever the Crypto Fear & Greed Index has plunged to 10 or lower in previous cycles, Bitcoin’s subsequent performance has been nothing short of remarkable. On average, the price has climbed around 10% within the first week alone. Over the next 15 to 30 days, it has typically stayed flat or still managed another 10% gain. By day 80, the average return has swelled to 23%, and within six months, Bitcoin has delivered an impressive 33% upside, turning extreme panic into some of the most profitable buying opportunities of each cycle.
Economist Alex Kruger highlighted that of the 11 times since 2018 the index reached this extreme, nearly every instance produced a sharp rebound after brief weakness, making it one of Bitcoin’s most dependable behavioral patterns.
Prominent analyst VICTOR called the current zone “the close your eyes and bid type of range,” pointing out that this magnitude of fear and capitulation typically appears during late-stage washouts, not cycle tops.
Short-Term Holders Are Bleeding — Which Often Marks the Bottom
Fresh on-chain metrics show short-term holders (STH) are now in one of the worst capitulation phases of the cycle.
• STH-SOPR has fallen to 0.97, meaning recent buyers are consistently locking in losses
• STH-MVRV is deeply below 1.0, virtually all holders who bought in the last few months are underwater
• Over 65,200 BTC was sent to exchanges at a loss in recent days
This exact combination, sub-1.0 SOPR, heavily negative MVRV, and large loss-taking inflows has repeatedly coincided with major turning points in previous cycles.
READ ALSO: Crypto Market Grapples with Longest “Extreme Fear & Greed Index” in Three Years
The Verdict
The current 26.7% correction has triggered the deepest fear of the bull market so far, with the Crypto Fear & Greed Index sitting at just 11.
History shows that when panic collapses to these levels, the path of least resistance quickly flips higher.
For anyone still on the sidelines, this may be one of those rare moments where closing your eyes and buying the fear has paid off the most.
What’s your move at $90K — stacking or waiting? Drop it below.
This is not financial advice. Always do your own research and only invest what you can afford to lose.
Angela Okafor is a lead reporter and journalist specializing in cryptocurrency and forex trading. Known for simplifying complex market trends into clear, engaging stories, she empowers readers to confidently navigate the fast-paced world of digital finance and global markets. She is dedicated to delivering actionable insights that inform, inspire, and drive smarter investing decisions.
