Despite reaching record heights recently, interest in Bitcoin is dropping, with search activity on Google revealing a return to a bearish sentiment among investors. The crypto market sentiment index indicates fear, highlighting a lack of enthusiasm from retail investors following Bitcoin’s price highs in 2025.

Key Points:

• Retail interest in Bitcoin is decreasing despite reaching all-time highs in 2025.
• There is diminishing demand in the spot market, suggesting bearish market conditions.
• Overall market sentiment has fallen, indicating lower investor engagement.

Bitcoin retail buyers generally show up following price surges or new all-time records. However, even with several record highs in 2025, engagement from average investors remains subdued.

Are Retail Investors Losing Faith in Bitcoin?

Spot demand for Bitcoin has been on the decline recently, demonstrating a decrease in retail investor interest according to CryptoQuant’s metrics. The Apparent Demand metric illustrates a notable drop of 111,000 BTC over 30 days.

“This represents a transition towards bearish conditions,” commented analysts in CryptoQuant’s Weekly Crypto Report.

Google Trends shows a dramatic decline in search interest for Bitcoin, dropping to levels akin to bearish market periods, alongside significant volatility last week that coincided with a price drop.

Trader Mister Crypto highlighted the current sentiment on social media:

“Has retail given up on Bitcoin?”

The Coinbase app has seen a significant decline in its ranking within the finance category, further indicating waning retail interest. The app, which was previously ranked 3rd, now sits at 29th position.

Crypto Sentiment Reaches Six-Month Lows

The market sentiment has also dipped to the lowest extent since April amidst a significant sell-off, with over $20 billion in trades liquidated on centralized exchanges. The Crypto Fear & Greed Index fell sharply to a score of 24, reflecting a drop from the previous ‘Greed’ score of 71. This sentiment mirrors situations encountered in prior bear markets.

CryptoQuant’s Axel Adler Jr. noted the extreme bearish conditions within the Bitcoin Unified Sentiment Index, which suggests that investors are overly cautious and that participation is notably low, despite Bitcoin maintaining relatively stable prices near cycle highs.

Given the current bearish sentiment, it remains crucial for investors to seek out insights and conduct thorough research before making trading decisions.