Bitcoin has experienced a challenging start to February, with 42.85% of its circulating supply currently in loss, according to analyst GugaOnChain. The Net Unrealized Profit/Loss (NUPL) indicator has dropped to 21.30%, indicating widespread fear among investors. The Fear and Greed Index has reached a rare low of 8, reminiscent of past market stress events such as the 2018 bear market and the March 2020 COVID crash. The cryptocurrency's quarterly performance is down 25.8%, with little recovery expected before Q2 2026. Institutional interest appears to be waning, as evidenced by $2.17 billion in net outflows from spot Bitcoin ETFs since early February. Bitcoin's price has fallen approximately 28% over the past month, trading around 46% below its October 2025 peak of $126,000. Despite the downturn, demand from accumulator addresses remains strong, with 380,104 BTC accumulated over the last 30 days. Miners are also holding onto their Bitcoin, supported by AI revenue streams. The market is characterized by fear and defensive positioning, with recovery dependent on investor resilience.