Following Bitcoin’s 5% drop in two hours on the 22nd of February, the Crypto Fear and Greed Index dived once again.
It had been within the “extreme fear” region throughout February, but fell to a reading of 5 on Monday.
As Joao Wedson, CEO and Founder of intelligence platform Alphractal, observed, the last time the index reached this low was in 2019. Analysts expect the price to go to the network’s realized price at $54k.
It might need to drop further south to bring participants to a phase of “maximum stress” before the cyclical recovery can begin. The falling Bitcoin [BTC] prices and extreme fear conditions drove a capital flight from crypto.
Source: USDT.D on TradingView
The USDT Dominance reflects the USDT market cap as a percentage of the total crypto market cap. Rising USDT.D trends imply crypto prices are trending downward, and market participants feel safer on the sidelines, holding stablecoins.
Source: CryptoQuant
The stablecoin reserve on exchanges grew towards the end of 2025. It represented increasing buying power waiting to catch the bottom. This status quo was especially true from September to November.
Over the past month, the total supply of stablecoins has shrunk from $161.19 billion to $153.75 billion. During this time, USDT.D leapt higher once more.
The past month’s developments captured capital fleeing the crypto market (redeemed to fiat). Combined with the extreme fear seen on the Crypto Fear and Greed Index, it showed that the market was firmly in the hands of the bears.
Long-term Bitcoin holders were distributing
Source: Glassnode
The Long-Term Holder Net Position Change measured the 30-day change in supply in control of long-term holders (holders of BTC aged at least 155 days). The massive negative spike on the 5th of February saw 244,866 BTC flow from the LTH supply.
The falling price trends and heavy long-term distribution reinforced the bear market conditions and low conviction in BTC.
Stablecoin supply and the Tether dominance further illustrated market participants remaining sidelined and exiting crypto.
Final Summary
- The Crypto Fear and Greed Index reached 5 on Monday, lows last seen in 2019.
- Onchain metrics highlighted the bearish pressure on Bitcoin and the rest of the crypto market.