Bitcoin’s feelings fell to 2023 low, but ‘risk to’ environment may appear to spark a BTC price rally
Bitcoin (BTC) sitting in one of the least bullish phases since January 2023. According to the “Bull Score Index,” the investor’s sentiment shows the lowest reading in two years.
Bitcoin bull score index. Source: cryptoquant
Cryptoquant’s “Crypto Weekly Report” newsletter Explained Reading the “Bull Score Index” sitting below 40 for extended periods increases the likelihood of a bear market. The bull mark remained above 40 throughout 2024, only sinking below this threshold in February 2025, as met with chart above.
However, in the past 24 hours, the price of Bitcoin has shown stability compared to the massive losses seen in the US stock market. On April 3, Bitcoin closed the day with a green candle, while the S&P 500 dropped 4.5%, a historical first.
S&P 500 and Dow Jones expanded their decline on April 4, decreasing by 3.87% and 3.44%, respectively, while Bitcoin lasts close to the Breakeven point.
Related: Arthur Hayes likes tariffs because printed money disease is good for bitcoin
Is Bitcoin close to a risk-on phase?
Data from cryptoquant implies The days of Bitcoin value destroyed (VDD) metrics are currently sitting around 0.72, suggesting that the price of Bitcoin is in a transitional stage. Since 2023, such periods have been preceded by either incorporating price or updated accumulation before a bullish breakout.
Destroyed days of Bitcoin value. Source: cryptoquant
The Bitcoin VDD Metric monitors the movement of long-term coins, and has signed a well-known market trend since late 2024. The scale that sank to 2.27 on December 12, which signed aggressive earnings and this dynamic matches highly visible in 2021 and 2017. However, VDD dropped Cooling-off period in which revenue hope is dropped.
It opens the likelihood of a “risk-on” market for Bitcoin. In financial terms, a “risk-on” scenario occurs when investors embrace higher risk properties such as cryptocurrencies, which are often driven by optimism and means returning to trends.
In the midst of continued uncertainty in the market fueled by the US-led trade war, Bitcoin unexpectedly available from these tense.
Speaking with the potential of Bitcoin and the Crypto Market as a fence against traditional volatility on the market, Crypto businessman Jackis said,
“A reminder, this is not a collapse-driven crypto but a general risk-on, tariff, war-driven war-driven war. While all of that is revealed, it seems that crypto is likely to undergo most of them and have recently absorbed all sellers properly.”
Similarly, the Crypto Fear & Greed Index also ExhibitEd a “fear” category marked 28 on April 4. The index registered a “intense fear” score of 25 on April 3, suggesting that the current price could show a compelling purchase opportunity.
Crypto Fear & Greed Index. Source: alternative.me
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
