The Sharpe ratio for Bitcoin has fallen to -10, its lowest since March 2023. Analyst Darkfost from CryptoQuant believes that this move into negative territory historically signals the concluding phase of a bear market.

📊 The Sharpe ratio has just entered a particularly interesting zone, one that has historically aligned with the final phases of bear markets.

This is not a signal that the bear market is over, but rather that we are approaching a point where the risk to reward profile is… pic.twitter.com/w4EmsRZYlW

— Darkfost (@Darkfost_Coc) February 7, 2026

Similar values were recorded at the price lows during the cycles of late 2018 and 2022. In November 2025, the indicator dropped to zero when Bitcoin found a local minimum at $82,000.

The Sharpe ratio helps assess investment performance adjusted for risk.

While investment risks still outweigh potential gains, this trend typically precedes a shift in market direction. Darkfost warned that this phase could extend over several months, and Bitcoin's price may continue to correct before a full recovery begins.

10x Research shares a similar view.

10x Weekly Crypto Kickoff – Is a Final Washout Still Ahead?

The report covers derivatives positioning, volatility trends, and funding dynamics across Bitcoin and Ethereum, along with sentiment, technical signals, ETF and stablecoin flows, option activity, expected trading ranges… pic.twitter.com/qv1ZbR1uQl

— 10x Research (@10x_Research) February 8, 2026

Analysts noted extreme sentiment indicators while the broader downtrend persists. Without clear growth drivers, experts see no reason for urgent buying.

Declining Interest and "Extreme Fear"

Global user interest in cryptocurrencies on Google has dropped to yearly lows. This decline in search activity coincides with capital outflows from the digital asset market.

According to Google Trends, the search term "cryptocurrency" has fallen to 27 out of 100. The peak activity occurred in August 2025, when the market capitalization reached a historic high of $4.2 trillion (currently around $2.4 trillion).

Source: Google Trends.

The cryptocurrency sentiment index is currently in the "extreme fear" zone (14 points). On February 7, the index dropped to 6.

Cryptocurrency fear and greed index. Source: Alternative.

Analysts at Santiment described the crowd's sentiment as "fiercely bearish." The number of negative comments on social media reached its highest since December 1, indicating traders are searching for bottom signals.

Whale Accumulation

Major players have taken advantage of the recent market correction to aggressively accumulate Bitcoin. This was reported by on-chain analyst CW8900.

Whales have been accumulating massive amounts of Bitcoin during the recent drop.

“On February 6th, 66.94k $BTC in-flowed to accumulator addresses. This was the largest inflow amount in this cycle.” – By @CW8900 pic.twitter.com/F4YkRjTNcp

— CryptoQuant.com (@cryptoquant_com) February 9, 2026

The price drop triggered significant purchases, with investors moving coins to designated accumulation addresses.

According to the expert, on February 6, 66,940 BTC were transferred to such wallets. This was noted as the largest inflow during the current market cycle.

Recall that on February 6, Bitcoin prices dropped to $60,000, marking a new low since September 2024.