Recent commentary from the Kobeissi Letter has underscored a troubling trend 
in the capital markets: crypto-focused funds have encountered substantial 
outflows, with a notable $2 billion exiting last week alone. This marks the 
most significant withdrawal since February and extends a concerning streak, 
bringing total outflows to $3.2 billion over the last three weeks. Bitcoin And 
Ethereum Face Massive Withdrawals Leading these outflows is the market’s 
leading crypto, Bitcoin (BTC), which experienced a massive $1.4 billion in 
withdrawals, while the second largest cryptocurrency, Ethereum (ETH), followed 
closely with $689 million. As a result of these dynamics, the average daily 
outflows as a percentage of assets under management (AuM) have reached 
unprecedented levels. Related Reading: Bitcoin Bear Market Confirmed? Expert 
Predicts Price Target Of $40,000 By Late 2026 The cumulative impact of these 
outflows, coupled with declining prices, has led to a 27% reduction in total 
assets under management, now standing at $191 billion, a situation that the 
Kobeissi Letter has termed a “structural decline.” Market sentiment remains 
largely negative, particularly for Bitcoin, with expert Lark Davis examining 
current trends through the lens of key moving averages. Davis pointed out that 
as long as Bitcoin trades below the 50-week exponential moving average (EMA), 
currently placed just above the $10,000 mark, it remains in a bear market. He 
questioned whether the current downturn signifies a &#8220;big bear,&#8221; hinting at 
skepticism regarding recovery prospects, or a &#8220;mini bear,&#8221; reminiscent of 
April’s decline where Bitcoin, despite losing the 200-day EMA, did not breach 
the 50-week EMA. Davis proposed three possible scenarios for the coming weeks. 
The first posits a drastic descent into “goblin town” without recovery, which 
he considers unlikely given current oversold conditions. The second scenario 
involves a short-term rally that tests the 50-week EMA, potentially luring 
investors back before a sharp downturn. The third scenario, which Davis leans 
towards, suggests that Bitcoin could reclaim the 50-week EMA by year-end, 
fueled by easing macroeconomic conditions, including interest rates and market 
valuations. Crypto Market Turmoil Intensifies Compounding these market 
concerns is the precarious situation of Strategy, formerly known as 
MicroStrategy, headed by Bitcoin advocate Michael Saylor. Jacob King, CEO of 
SwanDesk, remarked that should Bitcoin fall a few more percentage points, 
specifically below Strategy’s average buy at just below $80,000, the firm 
would find itself in a precarious position with its Bitcoin holdings. King 
fears that forced liquidations could occur again for crypto investors, which 
could drive Bitcoin prices down toward $10,000 or lower due to increased 
selling pressure. Related Reading: Saylor’s Strategy Under Threat: Index 
Status At Risk With $8 Billion On The Line King&#8217;s commentary reflects a 
broader skepticism regarding the sustainability of the crypto market’s 
structure. He criticized the investment strategies surrounding Bitcoin as 
being propped up by &#8220;unsustainable fraud and hopium.&#8221; Highlighting past 
statements by Saylor, King recalled when Saylor encouraged extreme 
measures—such as taking out double mortgages and selling personal assets—to 
invest in Bitcoin, asserting that the current market turmoil should come as no 
surprise. At the time of writing, Bitcoin was trading at $84,700, over 30% 
below all-time high levels of $126,000 reached earlier in October. Featured 
image from DALL-E, chart from TradingView.com

Crypto Funds Face Third Consecutive Weekly Losses, Totaling $3 Billion In Outflows

Crypto markets are surging into a new era of data protection as regulators 
spotlight privacy tech poised to redefine transparency, security and real-time 
oversight across an increasingly interconnected financial ecosystem. SEC 
Hosting Privacy Roundtable as Crypto Oversight Expands Strong interest in 
safeguarding financial data continues to shape the evolving regulatory 
landscape across crypto markets. The […]

SEC Crypto Task Force Sets New Date for Privacy Roundtable as Mounting Threats Demand Stronger Policies

On-chain data shows a large amount of USDC inflows have just hit exchanges, a 
potential sign that investors are looking to buy the Bitcoin dip. USDC 
Exchange Inflow Has Registered Multiple Spikes Recently As explained by 
CryptoQuant community analyst Maartunn in a new post on X, the USDC Exchange 
Inflow has shot up recently. The &#8220;Exchange Inflow&#8221; here refers to an indicator 
that keeps track of the total amount of a given asset that&#8217;s being transferred 
to wallets connected with centralized exchanges. Related Reading: Bitcoin 
Mayer Multiple Retraces To Lower Bound—What Comes Next? Generally, investors 
deposit their coins to these platforms when they want to trade them away. As 
such, whenever the Exchange Inflow spikes, it can be a sign that there is 
demand for selling the asset. Such a trend can naturally be bearish for 
Bitcoin and other volatile cryptocurrencies. When it comes to stablecoins, 
however, trading has no effect on their price, as they are, by definition, 
stable around the fiat currency that they are pegged to. This doesn&#8217;t mean 
that stablecoin exchange deposits are without consequences, though. Investors 
usually store their capital in the form of USDC or another stablecoin when 
they want to avoid the volatility associated with Bitcoin and company. Once 
these traders feel the time is right to buy back in, they send their stables 
to exchanges and swap to the asset of their choice. As such, stablecoin 
inflows can actually be a bullish sign for the market. From the chart shared 
by Maartunn, it&#8217;s visible that the USDC Exchange Inflow has surged recently, a 
potential sign that fresh capital is looking to accumulate the volatile coins. 
The latest wave of USDC exchange deposits have arrived as Bitcoin and other 
digital assets have gone through a crash. Given this timing, it&#8217;s possible 
that traders are buying the dip. In some other news, the recent bearish price 
action has been especially hard on the short-term holders (STHs), as Glassnode 
analyst Chris Beamish has pointed out in an X post. As displayed in the above 
graph, the Bitcoin STHs have witnessed a plunge in their Net Unrealized 
Profit/Loss (NUPL) alongside the market downturn. STHs are the investors who 
purchased their coins within the past 155 days, and the asset is currently 
trading at levels notably below any seen during this window, so the entire 
cohort has dropped into a state of loss. Related Reading: Bitcoin Crash 
Dominated By US Selling, CryptoQuant Data Shows Since the recent downtrend has 
been quite steep, the degree of unrealized loss faced by the cohort has also 
been unlike anything witnessed since November 2022, when the last bear market 
reached its bottom. &#8220;STH are seriously feeling the pain,&#8221; noted Beamish. BTC 
Price Bitcoin briefly slipped below $81,000 earlier in the day, but it has 
since seen a small jump back to $83,900. Featured image from Dall-E, 
Glassnode.com, CryptoQuant.com, chart from TradingView

USDC Floods Exchanges: Are Traders Buying The Bitcoin Crash?

In what could soon be recognized as the worst-performing week since November 
2022, the market’s leading crypto, Bitcoin (BTC), experienced a significant 
downturn on Friday, plummeting to an eight-month low of $80,000. Market 
analysts suggest that this downturn began in earnest on October 10, when the 
market first exhibited signs of a downward trajectory. That day was marked by 
a brutal liquidation event, erasing nearly $21 billion within minutes and 
triggering a series of flash crashes that have since perpetuated fears 
throughout the industry. Digital Asset Treasuries At Risk? Ran Neuner, the 
founder of Crypto Banter, believes he has uncovered the reasons behind the 
crash that commenced on October 10 and why the market has struggled to regain 
its footing since then. Related Reading: Saylor’s Strategy Under Threat: Index 
Status At Risk With $8 Billion On The Line According to Neuner, two primary 
players known as Digital Asset Treasuries (DATs), including firms like 
Strategy (MSTR) and others, have been significant buyers driving this market 
cycle. The objective for these firms is straightforward: to become large 
enough to gain entry into major indices. Once included, passive index trackers 
are compelled to purchase large quantities of their stocks, thereby enabling 
these companies to grow even larger and secure placements in additional 
indices, thus perpetuating a self-reinforcing cycle. On October 10, MSCI, the 
world&#8217;s second-largest index company, announced a critical evaluation. They 
are questioning whether companies that primarily hold crypto assets should be 
classified as either &#8220;companies&#8221; or &#8220;funds.&#8221; If these firms are categorized as 
funds, they would no longer qualify for inclusion in passive indexing. This is 
crucial because funds follow a cyclical pattern: they acquire assets, grow 
larger, and become eligible for additional indices, further boosting their 
asset base. A ruling on this matter is anticipated on January 15, 2026. Should 
it favor the classification of these companies as funds, Neuner asserts that 
firms like Strategy could face automatic removal from all indices. Such a 
decision would compel pension funds and other passive index holders to divest 
from these companies, effectively diminishing one of their primary reasons for 
existence. The Future Of Crypto Hinges On Upcoming Ruling Given that DATs have 
underpinned the current market cycle through substantial purchasing pressure, 
investors apparently recognized the implications of the October 10 
announcement right away and adjusted their positions accordingly. This pivotal 
date now appears anything but coincidental; it marked a realization among 
informed market participants regarding significant risks to both 
cryptocurrencies and the existing market structure. Related Reading: Bitcoin 
Bear Market Confirmed? Expert Predicts Price Target Of $40,000 By Late 2026 
Looking ahead, the expert predicts that the market could continue to decline 
until the end of December. If the forthcoming announcement from MSCI is 
unfavorable, Neuner believes that a substantial sell-off may ensue as 
investors prepare for the potential exclusion from indices. Conversely, if the 
ruling is positive, Neuner asserts that it could signal a renewed bull market 
for Bitcoin and the broader crypto market. As of this writing, Bitcoin has 
slightly recovered to $84,880. However, the market’s leading cryptocurrency is 
trading 32% below its all-time high of $126,000, which was reached at the 
beginning of October—just four days before the major crash. Featured image 
from DALL-E, chart from TradingView.com

Risks To Crypto Market Ahead Of Key MSCI Ruling: Will It Spark A New Bitcoin Sell-Off?

America’s crypto momentum is erupting as urgent federal action to unlock 
digital asset innovation barrels toward center stage, promising transformative 
clarity across taxation, regulation and decentralized development. Push for 
Federal Crypto Clarity Intensifies A strong push for American crypto 
leadership is accelerating as industry groups outline swift federal actions to 
expand digital asset innovation. Solana […]

Cryptocurrency price in CLP