Bitcoin Bull Score Drops to Zero, Raising Market Concerns

Bitcoin Bull Score Drops to Zero, Signals Weak Market Momentum

In a recent update, analytics platform CryptoQuant reported that Bitcoin Bull Score Drops to Zero out of a possible 10 points as of Thursday. According to the firm, this marks the first time the indicator has reached this level since January 2022, ending a long stretch of stronger readings that lasted nearly four years. The announcement has sparked discussion among traders who closely watch on-chain signals for hints about market direction. 

Source:  X official 

CryptoQuant noted that such a low reading usually reflects fragile sentiment and slowing capital inflows, suggesting that current conditions favor caution rather than aggressive buying. 

Current Bitcoin data shows: The current price of BTC is $70,394.45 and the current market cap is $1.4T.

Source: CoinMarketCap official

What Is the Bull Score and How Does It Work?

The Bull Score is an on-chain composite indicator that measures the overall health of the crypto market by analyzing multiple blockchain data points.

1. It combines 10 separate on-chain components, including profitability metrics, liquidity conditions, and investor behavior.

2. Analysts use it to judge whether the environment leans toward expansion or contraction.

Typically, the score is viewed as a bearish signal when it falls below 40 and a bullish signal when it rises above 60. A reading of zero therefore points to extremely weak momentum and limited confidence among participants.

Key Factors Behind the Current Reading

CryptoQuant highlighted that all ten components are now below trend, showing broad softness rather than a single weak metric. 

One of the biggest drivers is the sharp drop in the MVRV (Market Value to Realized Value) ratio, along with reduced stablecoin liquidity across the Bitcoin network.

1. When MVRV declines, it often means investor profitability is shrinking.

2. It may indicate undervaluation or a possible buyer re-entry zone depending on broader conditions.

A falling ratio suggests that market value is approaching — or even dipping under — the average purchase price of holders. In simpler terms, many participants are sitting on smaller unrealized gains or temporary losses, which tends to reduce enthusiasm for fresh capital deployment.

Lower stablecoin supply can also signal limited buying power waiting on the sidelines, further explaining the muted outlook.

Future Outlook: Why Indicators Look Weak

From a broader perspective, several forces could be influencing this reading:

1. Profit-taking after earlier rallies may have drained short-term momentum.

2. Macro uncertainty, including interest rate expectations and global liquidity shifts, often makes investors more defensive.

3. Large players sometimes pause accumulation during unclear phases, leading to quieter on-chain activity.

Despite the gloomy signal, extreme lows have historically appeared near transitional periods rather than permanent downturns. For recovery, analysts typically look for improving liquidity, rising profitability metrics, and renewed demand from long-term holders.

If capital begins flowing back into crypto markets and profitability improves, the score could gradually lift in the coming months.

What Investors Might Consider

While indicators provide insight, they are not guarantees. Periods like this often encourage a balanced approach.

1. Long-term participants sometimes view weak sentiment as a chance to study value zones.

2. Short-term traders may prefer patience until stronger confirmation appears.

Avoid emotional decisions and focus on research, risk management, and portfolio balance rather than reacting to a single metric.

Conclusion: Bitcoin’s Bull Score falling to zero highlights a phase of reduced confidence and softer network trends. Yet such moments can also precede structural resets that prepare markets for the next cycle. Whether this turns into a deeper slowdown or a quiet accumulation stage will depend on liquidity, investor behavior, and macro conditions in the weeks ahead. 

YMYL Description: This article is for informational purposes only and does not constitute financial, investment, or trading advice. Crypto markets involve risk and volatility.