Bitcoin experienced a significant downturn Monday, falling over 26%—marking its most drastic correction in the current bull market. This steep drop, exceeding even the April correction of 26.5%, suggests potential exhaustion within recent market volatility. Analysts attribute this decline to a culmination of leveraged unwinding and expanding DeFi activity, which could pave the way for a renewed recovery. 26% is the largest drop during this current Bitcoin cycle. The Crypto Fear & Greed Index currently remains in ‘Extreme Fear,’ potentially indicating a favorable buying opportunity. Although market stress indicators suggest elevated but not critical levels of volatility, history reveals that extreme fear often precedes strong Bitcoin rebounds. On-chain data suggests capitulation among short-term holders, hinting at a potential bottoming process.