CryptoQuant’s Bull Score for Bitcoin just took a nosedive: it dropped from 80 to 30 in the past week, sliding straight back into bearish territory. That’s a clear sign the bulls are losing steam and on-chain momentum is cooling off fast.

On-Chain Signal: Demand and Profits Slump

BTC demand is still weak, with short-term holders seeing their profits shrink. Put together, this points to fading risk appetite across the market—speculative capital isn’t rushing in, and there’s no solid inflow of margin demand either.

What Bull Score Measures

Bull Score blends several key on-chain metrics to gauge where we’re at in the market cycle. The higher the score, the more bullish the setup: above 60 means bulls are in charge, below 40 is bear country. With the latest drop, it’s clear the mood has flipped defensive.

Backdrop: Risk-Off After the Fed

The market’s gone risk-off after the Fed hiked rates and Kevin Warsh doubled down with a hawkish tone. That’s made investors extra cautious, lining up with the on-chain weakness flagged by the Bull Score.