In a most alarming turn of events, the noble coin Bitcoin experienced a precipitous decline of five per cent within a mere two hours on the 22nd of February, thereby casting the Crypto Fear and Greed Index into a state of abject despair. One might say the index had been languishing in the “extreme fear” quadrant for nigh on the entirety of February, yet its descent to a wretched reading of 5 upon Monday’s arrival left even the most stoic observers quaking in their boots.
As Joao Wedson, that estimable gentleman and founder of the intelligence platform Alphractal, so sagely observed, such depths of despondency were last witnessed in the year 2019. The learned analysts now posit that the price must descend further southward, perhaps to the network’s realized price of £54,000, ere the market may be coaxed into a state of “maximum stress” and the long-anticipated cyclical recovery may commence. Indeed, the falling Bitcoin prices and the prevailing atmosphere of terror have driven capital from the crypto realm as swiftly as a lady might flee a foxhound at a country ball.
The USDT Dominance, that most telling of metrics, reveals the USDT market cap as a fraction of the total crypto market cap. Should one observe a rise in USDT.D, it betokens a downward trend in crypto prices and a growing preference among participants to cling to stablecoins, as though sheltering beneath a parasol in a thunderstorm.
The stablecoin reserves upon exchanges swelled toward the close of 2025, a most curious phenomenon suggesting that buyers awaited the opportune moment to snatch up bargains. This trend was particularly pronounced from September to November, when patience and prudence reigned supreme.
Of late, the total supply of stablecoins has dwindled from £161.19 billion to £153.75 billion, while USDT.D ascended once more. These developments, coupled with the extreme fear upon the Crypto Fear and Greed Index, leave no doubt that the bears now hold dominion over the market with the tenacity of a pugilist.
The Long-Term Holders’ Grand Exit
The Long-Term Holder Net Position Change, a metric most enlightening, measures the 30-day shift in holdings of those who have clung to their BTC for at least 155 days. On the 5th of February, a most catastrophic negative spike saw 244,866 BTC depart the LTH supply, as if the very holders had been summarily evicted from their estates.
The falling prices and this heavy distribution by long-term holders have but reinforced the bearish conditions and the market’s lack of conviction in BTC. Even the stablecoin supply and Tether’s dominance underscore the participants’ reluctance to engage in crypto, preferring instead to remain safely ensconced in the wings.
Final Summary
- The Crypto Fear and Greed Index plummeted to 5 on Monday, a nadir last seen in 2019.
- On-chain metrics bore witness to the bearish pressure upon Bitcoin and the wider crypto market.
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2026-02-24 04:27