Bitcoin Bear Market Hits Harder Than 2022 Crash

Bitcoin’s current nosedive looks worse than 2022. CryptoQuant dropped data Wednesday showing the crypto giant fell 23% over 83 days since November, while 2022’s same stretch only saw 6% losses.

“Momentum is deteriorating faster this cycle,” CryptoQuant said in their report. The numbers don’t lie – Bitcoin peaked at $126,000 in October before that brutal liquidation event on October 10 sent it crashing to $71,000. The Bull Score Index, which sat pretty at 80, now reads zero. That’s basically screaming structural weakness, and traders know it. Key support levels got wiped out, with analysts eyeing a $60,000 to $70,000 range as the next target.

Not looking good.

The “Traders’ On-chain Realized Price” became Bitcoin’s enemy recently, rejecting it three times. During bull runs, that level acts like a safety net. Now it’s turned into a brick wall pushing prices down. CryptoQuant tweeted about it: “Bitcoin’s bear market is off to a weaker start than 2022.” They hammered home that 23% drop since November 12, 2025, comparing it to the previous cycle’s gentler decline.

Santiment’s data shows sentiment for Bitcoin and Ethereum hit “extremely bearish” territory. But here’s the thing – when small traders get this pessimistic, sometimes you see short-term bounces. It’s contrarian thinking, and the market loves surprises.

Glassnode wasn’t pulling punches either. They said: “The BTC bear market rages on as profitability resets, realised losses rise, spot demand stays weak, and leverage unwinds.” The Fear and Greed Index crashed to around 12, an all-time low that screams panic selling.

The broader crypto market took a beating too. Total market cap sank 4.4% to $2.53 trillion – lowest since April 2025. Bitcoin dropped below $71,000 during Thursday’s Asian trading session, setting up a potential test of $65,000 support.

Ethereum’s struggles got worse Thursday, February 5. It can’t climb back above $2,100 and there’s no recovery in sight. That matches previous cycle lows, which isn’t great news for ETH holders. Altcoins? They’re getting destroyed. Many lost 80% from their peaks, making Bitcoin’s decline look tame by comparison.

Market participants don’t know where this ends. Some fear we’ll revisit 2024’s bear market lows, and honestly, nobody’s ruling it out. The volatility keeps hitting other major digital assets hard. Ethereum’s failure to regain momentum above $2,100 shows how deep these problems run – it used to be more resilient during downturns.

CryptoQuant’s analysis zeroed in on that Traders’ On-chain Realized Price level again. The repeated rejections there signal a major shift in market dynamics. Traders won’t push prices higher right now, adding fuel to the bearish fire. February’s shaping up to be a crucial month for Bitcoin price action.

And there’s more bad news brewing. CryptoQuant’s February 5 data revealed Bitcoin’s network activity is declining. Active addresses dropped, suggesting users are losing interest or confidence in the cryptocurrency. When engagement falls, it usually means more pain ahead for prices.

Glassnode reported February 4 that Bitcoin’s realized losses hit new highs. That metric tracks coins sold at a loss, and it’s surging. Traders who bought at higher levels are feeling serious financial strain, forcing liquidations as prices keep falling.

Brian Quinlivan from Santiment voiced concerns about more volatility coming. He noted retail investor sentiment is extremely negative, which could trigger unpredictable price swings soon. The market environment feels uncertain and ripe for more disruptions.

February 5 saw Bitcoin’s trading volume spike as traders reacted to the price drop. Major exchanges recorded the surge, suggesting heightened activity as investors either give up or try to buy the dip. Volume spikes often mark critical market moments where sentiment shifts can trigger big moves.

The crypto space faces serious challenges right now. Many altcoins crashed 80% from their peaks, highlighting the extreme risk and instability investors are dealing with. As traders reassess their positions, the bear market’s grip tightens across the entire cryptocurrency landscape.

Bitcoin’s network fundamentals keep weakening. User engagement is down, realized losses are up, and support levels keep breaking. The $65,000 level looms as the next major test, with no guarantee it’ll hold if selling pressure continues.

The institutional landscape adds another layer of complexity to Bitcoin’s current struggles. MicroStrategy, which holds over 190,000 Bitcoin worth roughly $13.5 billion at current prices, faces mounting pressure as its stock price correlates heavily with Bitcoin’s movements. The company’s aggressive Bitcoin accumulation strategy, once celebrated during the bull run, now looks increasingly risky as unrealized losses pile up. Meanwhile, spot Bitcoin ETFs launched in early 2024 have seen significant outflows, with BlackRock’s IBIT and Fidelity’s FBTC recording net redemptions for five consecutive trading days.

Regulatory uncertainty compounds the selling pressure across major markets. The SEC’s continued scrutiny of cryptocurrency operations has spooked institutional investors, while proposed legislation in Congress could further restrict crypto trading. China’s renewed crackdown on Bitcoin mining operations has also disrupted network hash rates, contributing to the fundamental weakness CryptoQuant identified. European regulators are implementing stricter compliance requirements under MiCA regulations, forcing some exchanges to limit services and creating additional friction for traders trying to navigate the downturn.