Bitcoin Experiences a Sharp Shift in Sentiment as Market Confidence Deteriorates

Market Sentiment Decline: Bitcoin's market sentiment has turned negative, with the Comprehensive Sentiment Index dropping into the "extremely pessimistic" zone, indicating reduced investor risk appetite and participation despite prices near cycle peaks.

Comprehensive Sentiment Index Overview: The index, which combines the Fear and Greed Index, CoinGecko’s voting metric, and a sliding scale for comparative analysis, has fallen below -70, signaling "Extreme Fear" and reflecting a defensive stance among investors.

Investor Behavior and Market Liquidity: Despite Bitcoin prices around $110,890, investor behavior is cautious, with limited fund inflows and reduced trading volume, suggesting waning rally momentum and a search for safeguards against potential corrections.

Historical Context: Previous extreme fear phases in Bitcoin often led to long-term accumulation periods, but current conditions show both institutional and individual investors maintaining a cautious approach with low risk appetite.