Google Searches for Bitcoin Spiking Amid Market Volatility

Bitcoin’s price dropped below $65,000 on February 5, 2026, as the Crypto Fear and Greed Index hit an extreme fear level of 9 — the lowest since the Terra and FTX collapses in 2022. The index, which tracks investor sentiment using volatility, trading volume, and Bitcoin dominance, reflects a sharp shift in risk appetite amid global macroeconomic pressures. The drop came after $2.7 billion in leveraged positions were erased in a 24-hour period, triggering widespread liquidations.

Spot Bitcoin ETFs recorded $434.1 million in net outflows on February 5, with BlackRock’s IBIT leading the outflows. This signals growing caution among institutional investors who are recalibrating their exposure to the crypto asset class. The ETF outflows followed a broader pattern of capital retrenchment, with Bitcoin’s price falling to a 2026 low near $60,000 in late U.S. hours on Thursday.

Google Trends data shows a surge in interest for Bitcoin and related keywords, aligning with the extreme fear levels in the market. Analysts suggest that spikes in search activity often accompany market bottoms, as investors begin to look for opportunities amid panic-driven selling.

Why Did This Happen?

Bitcoin’s recent volatility has been driven by a combination of macroeconomic pressures and regulatory uncertainty. Global uncertainties linked to AI, geopolitics, and macroeconomic conditions have caused investors to flee risk assets. The recent FTX collapse and regulatory crackdowns have further eroded investor confidence, particularly among leveraged traders and short-term holders.

Institutional selling has intensified in 2026. US spot Bitcoin ETFs, which were net buyers in 2025, have offloaded 10,600 BTC so far this year, creating a 56,000 BTC demand gap compared to the previous year. This shift has contributed to persistent selling pressure, with Bitcoin spot ETFs seeing $1.2 billion in outflows in the past week alone.

How Did Markets React?

The Coinbase Premium Gap, a metric used to estimate demand from institutional investors compared to retail, has fallen to its lowest level in over a year. This indicates a significant reduction in institutional demand and increasing selling pressure on the professional side. The gap has been declining since mid-October 2025, with the rate of decline accelerating in recent weeks.

Bitcoin’s RSI is at historically oversold levels on multiple time frames, with values at 18 on the 12-hour chart, 20 on the daily chart, and 23 on the four-hour chart. These levels are often associated with market capitulation, where panic selling reaches a peak and buying opportunities emerge.

Retail investors are also adjusting their strategies. Ethereum ETFs saw $81 million in outflows on Thursday, marking the second consecutive day of net outflows. Meanwhile, XRP ETFs recorded modest inflows of $1.28 million.

What Are Analysts Watching Next?

Analysts are closely monitoring the Crypto Fear and Greed Index and RSI levels for potential signs of a short-term relief rally. The index currently sits at 9, historically indicating that panic conditions often flush out leveraged traders and short-term holders. While the index does not predict price direction, it does highlight market stress and the likelihood of eventual rebounds.

Institutional activity is also under scrutiny. BlackRock transferred $170 million in Bitcoin and Ethereum to Coinbase Prime, raising questions about whether the firm is selling or accumulating. Similar moves in January were followed by outflows, but recent ETF inflows suggest some capital remains interested in the market.

Regulatory developments, particularly the progress of the CLARITY Act in the U.S. Senate, could provide a catalyst for a market recovery. Analysts believe regulatory clarity and broader integration of digital assets into financial infrastructure will support long-term adoption.

Bitcoin’s price has recovered slightly to trade above $65,000 after briefly hitting $60,000, but analysts warn that capitulation risks remain high. Most BTC supply is now underwater, increasing the likelihood of further selling pressure until a clear bottom is reached.