Bitcoin ‘risk off’ signals fire despite traders’ view that sub-$100K BTC is a discount

UAE's Mashreq Capital has launched a multi-asset fund that includes an allocation to Bitcoin, reflecting a strategic move to diversify investment options for clients. This fund aims to attract both retail and institutional investors looking to gain exposure to cryptocurrency within a regulated framework.

Data from Binance indicates shifting liquidity patterns and unique trader positioning, which could significantly influence Bitcoin's next price movement. Recent trends show Bitcoin has reclaimed the $93,000 level, suggesting a potential market rebound after a period of bearish sentiment.

The cryptocurrency market faced significant pressure on December 5, 2025, with Bitcoin and altcoins experiencing declines of over 2%. This downturn was marked by soaring liquidations and a sharp drop in open interest, indicating a turbulent trading environment.

Crypto analyst Miles Deutscher has declared a 91.5% probability that Bitcoin has reached its bottom, citing market reactions to negative news and historical patterns as key factors in his assessment. He emphasizes that despite recent adverse events, Bitcoin's price has shown resilience, suggesting a potential turning point in the market.

Bitcoin's potential to reach $100,000 by the end of the year is closely tied to investor reactions to the Federal Reserve's policy shifts and the increasing debt levels of major technology and AI companies. As the market anticipates these changes, Bitcoin's price movements are under scrutiny.

Bitcoin miners are currently facing unprecedented margin pressures as their profitability declines amid falling prices and increased mining difficulty. This situation is compounded by a significant drop in proxy stocks, indicating a challenging environment for the cryptocurrency sector.

Bitcoin's recent price volatility has brought renewed attention to MicroStrategy, the largest corporate holder of Bitcoin, as traders look for stability in a fluctuating market. Analysts are closely monitoring the company's potential influence on Bitcoin's price, particularly if it decides to sell some of its holdings.

BlackRock's Bitcoin ETF has experienced a staggering outflow of $2.7 billion, marking the longest streak of withdrawals on record. This trend raises concerns about the future of Bitcoin as it struggles to regain its bullish momentum amidst ongoing market volatility.