CryptoQuant Bullishness Index Drops to Two-Year Low, Signaling BTC Bulls
The Bull Score, an indicator of the health of the Bitcoin market, is currently at 20, which could indicate a potential structural shift in market dynamics.
Posted by Shaurya Malwa | Edited by: Parikshit Mishra Updated: March 21, 2025 17:42 UTC Published: March 21, 2025 12:22 UTC
Important points:
- Bitcoin has seen a massive 23% decline from its peak of $109,000 in January, sparking speculation about the possible start of a new bear market.
- The Bull Score index, which measures the health of the Bitcoin market, is currently in the low 20s, which could signal a potential structural change in market dynamics.
- Investor returns are waning: US spot Bitcoin ETFs have seen a net outflow of $180 million over the past 30 days, indicating weaker demand.
Short-term price swings are common in a Bitcoin (BTC) bull market, but one indicator suggests that the current decline from recent highs may reflect a deeper structural shift in market dynamics.
Bitcoin was trading around $84,000 in Europe on Friday morning, down 23% from its peak of $109,000 in January. The drop has rattled investors and sparked debate over whether it is the start of a new bear market or a temporary correction within a broader bullish trend.
Such pullbacks are not uncommon — BTC has seen similar declines in previous bull cycles, often recovering to new heights. However, CryptoQuant’s Bull Score Index, a comprehensive indicator designed to assess the health of the Bitcoin market, is showing signs of deeper weakness.
The index evaluates ten key metrics covering network activity (such as transaction volume), investor profitability, market liquidity and other factors, assigning a score from 0 to 100. High scores indicate a stable, optimistic environment, while low scores indicate bearish conditions.
The Bull Score is currently at an alarming 20 points, the lowest since January 2023, when Bitcoin was trading around $16,000 after the collapse of the then-largest cryptocurrency exchange FTX.
Eight out of ten indicators tracked by the index are sending warning signs, with network activity declining since December 2024, and transaction volumes and liquidity shrinking.
“Historically, Bitcoin has only seen significant price gains when the bullish index is above 60, while sustained readings below 40 have been consistent with a bear market,” analysts at CryptoQuant wrote in a report published Thursday.
Investor returns fell as short-term holders faced unrealized losses and demand weakened — US spot bitcoin ETFs, previously aggressive buyers, recorded net outflows of $180 million over the past 30 days, one of the highest withdrawals since trading began in early 2024.
In previous cycles, readings below 40 for weeks or months preceded prolonged bearish phases like the 2022 downturn, when Bitcoin lost more than 60% of its value from its peak.
The coming weeks will be critical. Either the index will rebound, signaling a return
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