Bitcoin’s Bull Score Index Drops to Two-Year Low, Raising Market Concerns
A crucial Bitcoin market indicator has hit its lowest level in two years, suggesting potential headwinds for the leading cryptocurrency.
Bitcoin traded near $84,000 on Friday morning in Europe, marking a 23% decline from its January high of $109,000. While price corrections are normal in bull markets, data from CryptoQuant’s Bull Score Index indicates that this drop could reflect deeper structural weakness.
The Bull Score Index, a composite measure assessing Bitcoin’s market strength, assigns a score from 0 to 100 based on ten key metrics, including network activity, investor profitability, and liquidity. A score above 60 signals bullish momentum, while prolonged readings below 40 often precede bearish trends.
Currently, the index sits at 20—the lowest since January 2023, when Bitcoin was trading around $16,000 following the collapse of crypto giant FTX. Eight of the ten metrics that make up the index are flashing bearish signals, with network activity declining and liquidity tightening since December 2024.
“Historically, Bitcoin has struggled to sustain rallies when the Bull Score is below 40, while strong price increases have been associated with readings above 60,” CryptoQuant analysts wrote in a Thursday report.
Investor sentiment has also weakened, with many short-term holders facing unrealized losses. Meanwhile, U.S. spot Bitcoin ETFs, which were once heavy buyers, have recorded net outflows of $180 million over the past month—one of the highest withdrawal rates since their inception in early 2024.
Previous market cycles have shown that prolonged periods of a low Bull Score Index often precede extended downturns, such as the 2022 bear market, which saw Bitcoin lose more than 60% of its value from its peak.
The coming weeks will be decisive. If the index rebounds, Bitcoin could regain upward momentum. However, if it remains low, further downside pressure could emerge, with analysts closely watching the $80,000 support level as a critical threshold for market stability.
