Crypto market sentiment has remained unusually persistently bearish. February marked the fifth consecutive month of monthly closes in the red, highlighting sustained downward pressure.
Sentiment continues to deteriorate, with bears firmly in control, as reflected in on-chain data and technical indicators. Dynamics remain weak, participation has weakened and liquidity conditions remain fragile.
During downturns of this magnitude, investor behavior outside of price charts often provides critical context. Off-chain signals, particularly search behavior, offer insight into attention cycles and capital intent.
This analysis uses Google search interest for “crypto” as a behavioral indicator to gauge whether the market is on the verge of exhaustion or preparing for a structural rebound.
Search interest drops
Search interest has always served as a reliable barometer of market participation.
Periods of increasing research activity generally coincide with increasing demand and accelerating valuations. Conversely, large declines in search volume suggest investor disengagement, often reflecting elevated risk perceptions and capital preservation strategies.
Source: Alphractal
A close look at historical data shows a notable correlation between price action (black line) and fluctuations in search interest. Although not perfectly synchronized, the two measures generally moved in tandem over the cycles.
As of press time, Google search interest in crypto assets has fallen to one of its lowest levels since 2022. Engagement on major platforms, including Twitter, YouTube, Facebook and Instagram, has also cooled significantly, reinforcing the broader decline in attention.
This contraction suggests that capital has shifted to stablecoins, fiat equivalents, or traditional defensive assets.
The broader market decline coincided with an estimated $1.96 trillion capital outflow from the sector, reflecting both deleveraging and risk aversion.
Identify correlation patterns
To assess potential inflection points, Google Trends data for the keyword “crypto” was analyzed against historical price cycles. The measure has consistently tracked macroeconomic price movements with remarkable reliability.
In previous cycles, the suppression of search interest helped mark local troughs and the early stages of broader recovery trends. Similar dynamics were observed in May 2021, September 2023, October 2024 and April 2025, although generally with a slight lag compared to prices.
Source: Google Trends
Two critical research focus areas: 31 and 28, have historically aligned with major market inflection points. Current readings are near the 42% level, indicating that further compression may be necessary before a sentiment reset is complete.
Even if this does not guarantee a rebound, the levels remain structurally significant. The price action is simultaneously approaching a key support region (highlighted in blue on the chart), where previous accumulation phases emerged.
Source: TradingView
Beyond search behavior, broader sentiment gauges offer additional confirmation.
The Fear and Greed Index has entered extreme fear territory, a zone that has historically preceded mid-term rallies.
Although the index does not provide precise timing, previous instances of similar fear compression have coincided with periods of accumulation that subsequently resulted in upward price expansion. The current numbers represent one of the most pronounced fear environments in recent cycles.
The dominance of Bitcoin as a liquidity signal
Bitcoin continues to hold the majority of market liquidity, with dominance currently at 58.29% according to CoinGlass. Monitoring Bitcoin dominance provides insight into early recovery dynamics.
In initial rebound phases, capital typically flows into Bitcoin before flowing into higher beta altcoins. As a result, Bitcoin’s growing dominance often marks the first structural change in liquidity conditions.
Key thresholds to watch for include a breakout above 60%, with the 64% region representing a more decisive structural level on the dominance chart. Sustained movement in these areas would indicate a concentration of capital and potential conditions for early recovery.
For the moment, the market has not confirmed a recovery phase. Liquidity remains limited and further downward volatility cannot be ruled out before stabilization occurs.
However, behavioral metrics and sentiment compression suggest the market may be moving closer to a preparatory accumulation phase rather than the midpoint of the decline.
Final summary
- Research interest remains moderate and has not yet aligned with historical levels or chart structures that typically precede sustained rallies.
- Tracking the rotation of liquidity into Bitcoin could provide clearer confirmation of capital returning to the broader crypto market.
