Bitcoin's Combined Market Index Plummets to Bear Market Levels

The Bitcoin Combined Market Index (BCMI) has plummeted to its lowest level in recent history, indicating that the cryptocurrency is experiencing structural weakness akin to bear market conditions seen in 2018 and 2022.

According to a report by CryptoQuant, the BCMI has fallen into the low 0.2 range from its peak of approximately 0.5 in October, marking a divergence from past mid-cycle cooling periods.

The index aggregates various metrics such as MVRV, profitability indicators like NUPL, and sentiment measures to provide a comprehensive view of Bitcoin's market health.

Historical data shows that previous cycle bottoms formed when the BCMI reached around 0.10-0.15, but current readings remain above those levels, suggesting that full capitulation has not yet arrived.