Bitcoin fell to $80,600, marking a 10% weekly loss and a 23% monthly drawdown, the steepest since June 2022. Futures liquidations exceeded $1 billion, highlighting the severity of the downturn described as the fastest bear market ever. Crypto market cap dropped 33% since October, with record fund outflows and negative ETF flows signaling institutional selling pressure.

The total crypto market cap plummeted to $2.8 trillion from $4.2 trillion since October, a 33% drawdown. The Kobeissi Letter described it as one of the fastest-moving bear markets, with selling intensifying across all sectors. Digital asset investment products recorded $2 billion in weekly outflows, the largest since February.

Bitcoin accounted for $1.4 billion in redemptions, with Ether following at $689 million, resulting in total outflows of $3.2 billion over three weeks. Average daily outflows reached all-time highs, dragging total AUM to $191 billion, down 27% from October. US ETF flows worsened the pressure, with Bitcoin ETF flows remaining negative.

Analysts noted a macroeconomic liquidity indicator, NFCI, trending lower, historically preceding BTC rallies by four to six weeks. NFCI currently sits at -0.52, with every 0.10 point decline aligning with 15%-20% Bitcoin upside. A Federal Reserve plan to rotate assets could inject liquidity, potentially sparking a new rally by mid-December.

Read more at Cointelegraph: BTC Hides Bullish Twist in Crypto’s Fastest Bear Market