Bitcoin News Today: Bitcoin's Price Plunge Hides Surging Institutional Demand at Key Levels

Bitcoin Flashes Largest Hidden-Buying Spike of the Cycle Despite Losing $90K Level

Bitcoin's price action has sparked renewed debate among traders and analysts, with the cryptocurrency flashing its largest hidden-buying spike of the cycle even as it retreated below the $90,000 psychological threshold. The term "hidden-buying spike" refers to a technical indicator where buying pressure intensifies despite a price decline, often signaling institutional accumulation or market resilience. This phenomenon emerged as Bitcoin stabilized near $87,000, a level that has historically served as a critical support zone. The move coincided with shifting macroeconomic expectations, including a sharp rise in the probability of a Federal Reserve rate cut in December-from 30% to over 80%-which has reshaped positioning across the digital asset sector according to market analysis.

The recent volatility underscores the fragility of market sentiment. Over $650 million in positions were liquidated in the past 24 hours, with a report stating $580 million in longs triggered after Bitcoin dipped below $86,000. Zcash (ZEC) and other altcoins experienced steeper declines, with ZEC falling 20% to $355 in a single day. Despite these losses, the hidden-buying spike suggests that buyers are stepping in at lower levels, a pattern often observed in cyclical market bottoms. Analysts attribute this to a combination of technical stabilization and the reemergence of optimism around macroeconomic policy shifts.

The broader crypto market has also seen a resurgence in structured investment opportunities, with projects like Bitcoin Munari gaining traction amid the uncertainty. Bitcoin Munari, a Solana-based project with a fixed supply of 21 million tokens, has advanced through its $0.22 presale round, offering participants a transparent, rule-based distribution model. The project's fixed-supply approach and phased roadmap have attracted attention as investors seek alternatives to volatile, variable-price offerings. A spokesperson for Bitcoin Munari emphasized that its presale structure is "not influenced by shifting macro conditions," allowing for predictable development timelines. This contrasts with the broader market's reliance on speculative narratives, where projects with dynamic pricing models often face sharp corrections during downturns.

Meanwhile, regulatory and geopolitical dynamics continue to shape the landscape. China's central bank reaffirmed its stance that crypto remains illegal, signaling a potential crackdown that could further pressure liquidity in the sector according to reports. In the U.S., a House report criticized the Biden administration's "choke point 2.0" regulatory approach, arguing that it stifled innovation by creating excessive uncertainty for financial institutions. However, the report noted that the Trump administration's reversal of several Biden-era policies has already begun to ease these constraints, potentially opening new avenues for institutional participation.

Looking ahead, the interplay between technical resilience and macroeconomic shifts will likely dictate Bitcoin's near-term trajectory. The hidden-buying spike, combined with the 80% odds of a Fed rate cut, suggests that the market is recalibrating to a new equilibrium. For now, structured projects like Bitcoin Munari and evolving regulatory frameworks may serve as critical anchors for investor confidence in an otherwise volatile environment.