The Sharpe ratio indicates the final stage of the bear market - ForkLog: cryptocurrencies, AI, singularity, the future

# The Sharpe ratio indicates the final stage of a bear market

The Sharpe ratio for the first cryptocurrency fell to -10 — the lowest since March 2023. CryptoQuant analyst known as Darkfost believes that the indicator entering negative territory historically signals the final phase of a “bear market”.

📊 The Sharpe ratio has just entered a particularly interesting zone, one that has historically aligned with the final phases of bear markets.

This is not a signal that the bear market is over, but rather that we are approaching a point where the risk to reward profile is… pic.twitter.com/w4EmsRZYlW

— Darkfost (@Darkfost_Coc) February 7, 2026

Similar values were recorded at the price lows of the cycles at the end of 2018 and 2022. In November 2025, the indicator dropped to zero when Bitcoin hit a local minimum at $82,000.

The Sharpe ratio helps evaluate investment efficiency adjusted for risk.

Although current investment risks still outweigh potential profits, such dynamics usually precede a trend reversal. Darkfost warned that this phase could last several months, and Bitcoin’s price may continue correcting until a full recovery begins.

Experts at 10x Research share a similar view.

10x Weekly Crypto Kickoff – Is a Final Washout Still Ahead?

The report covers derivatives positioning, volatility trends, and funding dynamics across Bitcoin and Ethereum, along with sentiment, technical signals, ETF and stablecoin flows, option activity, expected trading ranges… pic.twitter.com/qv1ZbR1uQl

— 10x Research (@10x_Research) February 8, 2026

Analysts noted extreme sentiment indicator values amid a persistent downward trend. Without clear growth drivers, experts see no reason for urgent buying.

Falling Interest and “Extreme Fear”

Global Google search interest in cryptocurrencies has dropped to annual lows. The decline in search activity coincides with capital outflows from the digital asset market.

According to Google Trends, the query “cryptocurrency” rating fell to 27 out of 100. The peak of activity was in August 2025, when market capitalization reached a historic high of $4.2 trillion (at the time of writing — about $2.4 trillion).

Source: Google Trends. The Cryptocurrency Sentiment Index is in the “extreme fear” zone (14 points). On February 7, the index dropped to 6.

Crypto Fear and Greed Index. Source: Alternative. Santiment analysts described market sentiment as “fiercely bearish.” The number of negative comments on social media reached a maximum since December 1, indicating traders’ attempts to find bottom signals.

“Whale” Accumulation

Large players used the recent market correction to aggressively accumulate the first cryptocurrency. This was reported by on-chain analyst pseudonym CW8900.

Whales have been accumulating massive amounts of Bitcoin during the recent drop.

“On February 6th, 66.94k $BTC flowed into accumulator addresses. This was the largest inflow amount in this cycle.” – By @CW8900 pic.twitter.com/F4YkRjTNcp

— CryptoQuant.com (@cryptoquant_com) February 9, 2026

The price decline triggered large-scale purchases. Investors transferred coins to special accumulation addresses.

According to the expert, on February 6, 66,940 BTC were received by such wallets. The analyst noted that this was the largest inflow of funds in the current market cycle.

Recall that on February 6, Bitcoin’s price dropped to $60,000, hitting a low not seen since September 2024.