The Bitcoin Sentiment Index has plunged into extreme bearish territory, according to Coinomedia. This index, which integrates the Fear & Greed Index, CoinGecko up/down votes, and a normalization layer, indicates a defensive investor sentiment despite Bitcoin's stable prices near cycle highs. The current sentiment reflects low trading participation and a reduced risk appetite among investors. Historically, such extreme bearish readings have preceded either a market rebound or a shakeout, suggesting potential future volatility in the cryptocurrency market.