Bitcoin faces mounting volatility as tightening liquidity and fading 
institutional flows raise the prospect of a slide toward $80K, amplifying 
market fragility even as equities hover near highs, according to signals 
highlighted by Arthur Hayes. Arthur Hayes Projects Bitcoin Volatility With 
Institutional Flows Pulling Back Crypto markets face renewed stress as 
liquidity gauges weaken. Crypto […]

Arthur Hayes Warns Bitcoin Could Drop to $80K With Liquidity Weakness and Market Stress

Bitcoin continues to struggle around the $90K level as the market battles 
intense selling pressure and widespread fear. Short-term sentiment remains 
fragile, with investors reacting to rapid price swings and mounting downside 
volatility. Yet, beneath the noise, key on-chain metrics are beginning to show 
signs that the correction may be nearing exhaustion. Related Reading: Nearly 
7M Bitcoin Now Sitting At A Loss: Highest Unrealized Pain Since January 2024 
According to analyst On-Chain Mind, Bitcoin’s Mean Reversion Oscillator has 
just printed its first green oversold bar in months, a signal that has 
historically aligned with late-stage retracements during bull markets. This 
oscillator measures how far price has deviated from its cyclical mean, helping 
identify when Bitcoin becomes overstretched to the downside. Each time this 
indicator dipped into its green oversold zone in previous cycles, Bitcoin was 
either forming a macro bottom or preparing for a significant rebound. The fact 
that this signal has appeared while BTC consolidates above $90K — despite 
severe profit-taking, forced liquidations, and structural fear — suggests that 
strong hands may be quietly absorbing supply. Historical Bottom Signals Align 
as Macro Tailwinds Strengthen On-Chain Mind explains that Bitcoin’s current 
Mean Reversion Oscillator reading aligns closely with historical patterns seen 
during bull market retracements. Each time the oscillator dipped into the 
green oversold zone while the 35 line held, Bitcoin formed a cyclical bottom 
before resuming its upward trajectory. This line has acted as a structural 
support level across multiple market cycles, and the fact that it is holding 
once again reinforces the idea that strong hands are stepping in as weaker 
participants capitulate. According to On-Chain Mind, when this indicator 
flashes green during an ongoing bull market, it often marks textbook 
accumulation territory — the kind of opportunity that appears only a few times 
per cycle. The current setup resembles previous late-stage pullbacks rather 
than the beginning of a prolonged bear trend. Adding to this outlook, NVIDIA’s 
blowout earnings delivered a major confidence boost to U.S. equities. With 
revenue and guidance far exceeding expectations, the results signal that AI- 
driven demand remains strong. In broader macro terms, such strength in tech 
leadership often spills over into higher-risk assets like crypto, improving 
liquidity and investor sentiment. Related Reading: Bitcoin Capitulation 
Deepens Around $90K Level: Classic Late-Stage Fear Structure Emerging Testing 
Support as Momentum Begins to Stabilize Bitcoin’s latest daily chart shows 
price attempting to stabilize after a sharp multi-week decline, with BTC 
currently trading near $92,000. This level is acting as a temporary support 
zone following the breakdown from the $100K area, where sellers aggressively 
dominated order books. The chart reveals a series of lower highs and lower 
lows — a classic short-term downtrend structure — but the recent candlesticks 
hint at reduced selling momentum compared to the peak pressure seen earlier in 
November. The 50-day and 100-day moving averages have both turned downward, 
reflecting weakening short-term trend strength, while the 200-day MA remains 
far below price, highlighting that the broader bullish cycle may not be 
invalidated yet. Importantly, the current candle structure shows smaller 
bodies and longer lower wicks, suggesting buyers are beginning to absorb sell- 
side liquidity around the $90K–$92K region. Related Reading: XRP Supply In 
Profit Falls to 58.5% – Lowest Since 2024 Despite Higher Price Volume profiles 
also support this shift. While capitulation-like spikes occurred during the 
heaviest drop, trading activity has now normalized, indicating panic selling 
is cooling off. Historically, such deceleration after a steep leg down often 
precedes a relief bounce, even if volatility persists. Featured image from 
ChatGPT, chart from TradingView.com

Bitcoin Mean Reversion Oscillator Prints First Green Oversold Bar in Months – A Classic Bull-Market Bottom Signal

Numerai — the San Francisco hedge fund that looks more like a sci-fi lab than 
a Wall Street operation — has raised $30 million in Series C funding, the 
company announced.

Numerai raises $30m to build ‘the last hedge fund’

Kalshi has joined predictions market rival Polymarket in the $10 billion-plus 
valuation club after reportedly raising another $1 billion from Sequoia 
Capital and CapitalG.

Kalshi’s valuation marked up to $11B after $1B funding round: TechCrunch

A sweeping Senate draft accelerates momentum for clear crypto oversight by 
empowering the CFTC, tightening consumer protections and signaling broader 
federal support that could lift liquidity and spur wider adoption across 
regulated U.S. trading venues. Senate Draft Released With Crypto Safeguards, 
Trading Rules, and CFTC Funding A sharper regulatory push is taking shape as 
lawmakers […]

Cryptocurrency price in PKR