Bitcoin Market Index Plunges into Bear Territory

The Combined Market Index for Bitcoin has dropped into the low 0.2 range, signaling that the cryptocurrency is operating in bearish territory.

This decline diverges from past mid-cycle corrections and increasingly mirrors transitions into risk-off environments, according to a report by CryptoQuant.

The index aggregates various valuation metrics, profitability indicators, spending behavior, and sentiment measures into a single composite reading.

Historically, previous cycle bottoms formed when the BCMI reached approximately 0.10-0.15, but current readings remain above those levels, suggesting that while Bitcoin may already be in a bearish framework, full capitulation has not yet arrived.