Bitcoin retail interest is in ‘bear market’ as crypto sentiment flips to fear

Despite recent all-time highs and volatility, search interest for “Bitcoin” on Google remained low as the crypto sentiment index returned to “fear.”

Key takeaways:

• Bitcoin retail interest lags despite 2025 all-time highs.
• Declining spot demand shows a “shift into bearish conditions.”
• Crypto market sentiment is also at bear market levels, reflecting caution and lower investor participation.

Bitcoin (BTC) retail investors are known for entering the market during periods of euphoria, typically after strong rallies or new all-time highs. Still, despite Bitcoin hitting multiple all-time highs in 2025, the general publics interest and retail activity continue to lag.

Have retail investors “given up” on Bitcoin？

Bitcoins spot demand has been contracting over the past week, signaling a waning of retail interest, according to data from CryptoQuant.

The chart below reveals that spot demand, measured by the Apparent Demand metric, has been declining at a 30-day rate of 111,000 BTC.

This is the steepest contraction since April, said CryptoQuant analysts in its Weekly Crypto Report, adding:

“This signals a shift into bearish conditions.”

Bitcoin: Apparent demand and bull-bear market cycle indicator. Source: CryptoQuant

Google global search interest for the term “Bitcoin” dropped to 19 last week, coinciding with Bitcoins flash crash on Friday, according to Google Trends.

“Bitcoin search interest on Google is at bear market levels,” said trader Mister Crypto in an X post on Wednesday, asking:

“Has retail given up on Bitcoin？”

Search trends for Bitcoin. Source: Google Trends

Similarly, the Coinbase app now ranks 29th in the US App Store within the finance category, a significant drop from its 3rd-place position in January, according to data from The Block.

Coinbase app ranking in the US App Store: Finance. Source: The Block

If mobile app rankings and Google search trends for “Bitcoin” can serve as proxies for retail interest, demand last peaked in November 2024, when the Coinbase app jumped from the 55th to the 3rd position in less than 30 days. At the same time, search activity spiked to its highest level in over two years.

Crypto sentiment drops to six-month lows

Crypto market sentiment has also dropped to its lowest level since April, following Fridays historic sell-off, which resulted in over $20 billion in liquidations on centralized exchanges.

The Crypto Fear & Greed Index, which measures overall market sentiment, fell to a “Fear” level of 24 on Thursday, representing a decline of 47 points from Fridays “Greed” reading of 71.

The index is now at similar levels to those last seen in April, when Bitcoin dropped to a low of $74,000. It also mirrors levels seen during the 2018 and 2022 bear markets, as shown in the figure below.

The Crypto Fear & Greed Index. Source: Alternative.me

CryptoQuant author Axel Adler Jr. said that the Bitcoin Unified Santiment Index is in the “extreme bearish” zone, indicating capitulation or panic among investors.

The index combines three components to capture overall market psychology: the Fear & Greed Index (reflecting macro mood and volatility), CoinGeckos up/down votes (reflecting retail sentiment) and a rolling normalization layer that aligns both in a one-year window.

Currently, sentiment is in the extreme bearish zone, similar to stress points seen in 2024, and April 2025, the analyst said, adding:

“This suggests that investors are defensive, participation is low, and risk appetite is depressed despite relatively stable BTC prices around cycle highs.”

Bitcoin unified sentiment index. Source: CryptoQuant

However, another proxy for retail interest, the Coinbase Premium Index, has remained firmly positive during the recent sell-off driven by liquidations, showing near-term market resilience.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.