Bitcoin fear hits 2025 lows – Yet institutions scoop up $24B: What gives?

Recent data from Alphractal showed the Crypto Fear & Greed Index falling to 10 at press time. This is the lowest sentiment reading of 2025.

Source: Alphractal

Such extreme fear has appeared only during market resets or the tail end of prolonged drawdowns. The index has now fallen from the mid-60s to near-zero territory within weeks, similar to the unwinding seen during mid-2021 and mid-2022.

Source: Alphractal

On top of that, the broader Alpha Crypto Sentiment Gauge shifted from neutral-bullish earlier this quarter to bearish and very bearish signals. That shift kept traders focused on possible capitulation zones.

Institutions bought the dip

Over $19 billion in liquidations and 1.6 million wiped-out traders created the perfect setup for large players to absorb supply at lower prices.

Long-term holders reportedly released 62,000 BTC since October, much of it flowing into ETFs managed by firms like BlackRock and Fidelity.

Despite panic-driven selling, ETF balances have grown by $24 billion in 2025. This correction may be a structural transfer rather than a cycle top.

A new structure

Building on the narrative, Bitwise CEO Hunter Horsley noted in an X post that crypto may already be deep into a six-month bear phase.

He argued that the traditional four-year cycle model no longer applied to a market shaped by ETF flows, regulation, and heavyweight institutions.

Source: X

By contrast, post-ETF dynamics introduced new mechanical buy-and-sell patterns that influenced volatility.

Despite the recent drop, Horsley maintained that underlying conditions could support one of the strongest recovery environments yet.