Bitcoin’s Descent: A Tale of Woe and Hope 🚀

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Behold, the once-mighty Bitcoin, now reduced to a mere $80,600, weeps under the weight of its own hubris! 🙃 A weekly loss of 10%-a spectacle more tragic than a Shakespearean tragedy! The monthly drawdown, a staggering 23%, rivals the despair of a lost love. 🌪️

Oh, the anguish of Bitcoin futures liquidations surpassing $1 billion! A veritable river of tears for the bears, who now declare this the “fastest bear market ever.” 🧙‍♂️

Key takeaways:

  • The crypto market cap, once a proud titan, now languishes at 33% below its former glory. A structural unraveling, indeed! 🧵

  • Fund outflows and ETF negativity-oh, the institutional selling pressure! A symphony of despair. 🎻

  • The NFCI, that sly fox, trends lower, hinting at a Bitcoin rally. A four-to-six-week dance of hope? 🕺

Crypto Market Cap Collapses: A Tragedy in Three Acts

Since Oct. 6, the crypto market cap has plummeted from $4.2 trillion to $2.8 trillion. A 33% drawdown! The Kobeissi Letter calls it the “fastest-moving crypto bear market ever.” A drama so swift, even the gods would weep. 🥹

This third consecutive week of net selling has drained $3.2 billion. Bitcoin, the star of the show, accounts for $1.4 billion in redemptions. A tragedy of epic proportions! 🎭

Average daily outflows, the relentless thief, have dragged AUM to $191 billion. A 27% drop since October. A structural decline, they say-but is it not merely panic? 🧠

ETF flows, oh, how they worsen the plight! Spot BTC ETFs remain in the red, while BlackRock’s ETF teeters on the brink of its largest weekly outflow. A spectacle of financial folly! 💸

A Macroeconomic Shift: Bitcoin’s Liquidity Lead?

While analysts cling to technical charts, Miad Kasravi, that visionary, delves into the NFCI. A decade-long backtest reveals a pattern: when the NFCI dips, Bitcoin dances! 🕺

Recall October 2022: easing conditions led to a 94% rally. July 2024: tightening conditions preceded a surge to $107,000. A cycle as predictable as the seasons! 🍂

Currently, the NFCI sits at -0.52, trending lower. A 0.10 point decline? A 15-20% Bitcoin boost! 📈 December brings the Fed’s mortgage-backed securities rotation-a “not-QE” event? A trickster’s game! 🤡

If the NFCI continues its descent, Bitcoin’s next move could be monumental. A cyclical inflection point, perhaps? 🌟

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2025-11-21 23:09