Bitcoin’s ‘fastest Bear Market’ Hides Potentially Positive Year-end...

Bitcoin’s abrupt drop to $80,000 shocked traders, but back-tested data on 105 indicators suggests the market washout is preparing BTC for a longer-term rally to new highs.

Bitcoin (BTC) fell to $80,600 on Friday, extending weekly losses to more than 10%. Its monthly drawdown has now reached 23%, the steepest decline since June 2022. The drop below $84,000 also pushed BTC to test the 100-week exponential moving average for the first time since October 2023, aligning exactly with the start of the current bull cycle.

Bitcoin futures liquidations surpassed $1 billion, underscoring the severity of this downturn, described by the Kobeissi Letter as the “fastest bear market ever.”

Crypto market cap has erased 33% since October, marking a rapid structural unwind.

A record fund outflow and negative ETF flows signal persistent institutional selling pressure.

A major macroeconomic liquidity indicator (NFCI) is trending lower, historically preceding BTC rallies by four to six weeks.

Since Oct. 6, the total crypto market cap has fallen to $2.8 trillion from $4.2 trillion, a 33% drawdown. The Kobeissi Letter called it “one of the fastest-moving crypto bear markets ever,” with selling intensifying across all major sectors. The newsletter said digital asset investment products are reflecting the same stress, with crypto funds recording $2 billion in weekly outflows, the largest since February.

This marked the third consecutive week of net selling, resulting in total outflows of $3.2 billion over that period. Bitcoin accounted for the bulk of the withdrawals with $1.4 billion in redemptions, while Ether followed with $689 million, representing some of the biggest weekly losses either asset has seen in 2025.

Average daily outflows as a share of assets under management (AUM) hit all-time highs, dragging total AUM to $191 billion, down 27% from October. Analysts classified this as a clear structural decline, not just short-term panic.

US exchange-traded fund (ETF) flows worsen the pressure. Spot BTC ETF flows remain below zero, reinforcing the sell-off. Meanwhile, BlackRock’s spot ETF is on pace for its largest weekly outflow ever, close to surpassing the $1.17 billion record from February.

Source: CoinTelegraph