U.S. Panic Searches Surge as Bitcoin Slides and Fear Deepens

Domestic Anxiety Peaks Amid Global Search Divergence

The search surge highlights a pronounced wave of domestic fear. While U.S. interest peaked at 100 this month, global searches for the same term have moderated, dropping from a high of 100 in August 2025 to levels around 38 recently.

This geographic split points to factors more acute in the American market, including sensitivity to U.S. policy shifts and economic sentiment.

Section 122 Tariffs Ignite Asset De-Risking

Trade policy developments under President Donald Trump have played a central role in the pressure. Following a Supreme Court ruling that invalidated certain prior tariff impositions under emergency powers, the administration moved to implement new global tariffs, initially at 10% and later raised to 15%, under Section 122 of the Trade Act of 1974.

These measures, set for an initial 150-day period, triggered immediate risk aversion across asset classes. Bitcoin responded with drops of 5% or more in sessions tied to the announcements, briefly falling below $65,000 and testing $63,000 as investors de-risked amid uncertainty over extensions, legal challenges, or retaliatory actions from trading partners.

Broader geopolitical strains, including tensions involving Iran and persistent macro headwinds, have added to the strain. The cryptocurrency’s passage through low-volume zones between $70,000 and $80,000 amplified the speed of the decline, exposing thin liquidity on the way down.

Spot Bitcoin ETFs have seen sustained outflows, with billions exiting over recent weeks, marking a reversal from the institutional inflows that fueled earlier momentum.

“Extreme Fear” Historically Signals Market Bottoms

Historical context tempers the alarm. Past spikes in “Bitcoin to zero” searches, such as 52 in May 2021, 66 in June 2022, 81 in July 2025, and 87 in November 2025, frequently aligned with local bottoms. In those instances, heightened retail pessimism marked capitulation phases that preceded recoveries as selling exhaustion set in.

The Crypto Fear & Greed Index has remained in extreme fear territory, a condition that has often foreshadowed rebounds in previous cycles.

On-chain indicators provide a more balanced view amid the noise. Short-term holders, typically more reactive to price swings, have continued realizing losses, though the pace has moderated.

Daily net realized losses for this cohort peaked at -$1.24 billion earlier in February but have eased to around -$0.48 billion recently, suggesting the intensity of panic exits is declining even as some capitulation persists.

Supply accumulation in the $60,000–$70,000 band has been notable, with over 400,000 BTC purchased in that range during the downturn, bolstering potential support floors.

Safe-Haven Decoupling and Technical Resistance

Bitcoin’s trajectory stands in contrast to traditional havens. Gold has held steady or gained ground as investors sought safety, underscoring the risk-off mood. The cryptocurrency’s partial decoupling from equities adds nuance, with macro drivers currently overshadowing crypto-native catalysts.

From a technical perspective, Bitcoin has staged a partial recovery, pushing toward resistance near $66,300, including proximity to its seven-day moving average. Holding above $64,000–$65,000 could stabilize the short-term outlook and open the door to further upside if broader risk sentiment improves.

A break below recent lows, however, risks retesting $60,000 or lower, where additional support clusters exist.

Retail Capitulation vs. Institutional Conviction

The record U.S. search interest captures the emotional toll of this correction on retail participants, many of whom entered during higher-price environments. Yet the data also reveal underlying resilience: institutional long-term holders have shown restraint in selling, and accumulation patterns during dips suggest conviction in eventual recovery.

As tariff uncertainties linger and markets digest policy implications, Bitcoin faces a test of whether this fear peak represents exhaustion or a prelude to deeper adjustment.

Past patterns indicate the former often prevails when capitulation aligns with stabilizing fundamentals.