Bitcoin had another massive selloff in the past hour. It retraced below $86k and hit a low of $85,100n before rebounding. BTC opened Monday with notable buyingBitcoin had another massive selloff in the past hour. It retraced below $86k and hit a low of $85,100n before rebounding. BTC opened Monday with notable buying

The Worst is Yet to Come. Bitcoin IFP Indicate Dangerous Liquidity Slowdown

2025/12/16 06:27
3 min read
For feedback or concerns regarding this content, please contact us at crypto.news@mexc.com

Bitcoin had another massive selloff in the past hour. It retraced below $86k and hit a low of $85,100n before rebounding.

BTC opened Monday with notable buying pressure, surging to $90k after trading at $88k. However, the asset soon lost upward momentum, resulting in a nearly 3% decline. It continues the previous day’s downtrend as the bulls failed to sustain the buyback attempt.

Questions about why the apex coin retraced remain a subject of mystery for many. It’s even more surprising as it came hours after Strategy splashed a whopping $980 million on fresh Bitcoin.

The latest decline, coinciding with Strategy’s BTC  purchase, is not a new occurrence. It has happened over and over again, as other whales now see the firm buying as an opportunity to take profit.

Nonetheless, fundamentals also played a significant role in the recent plummet. Since the Bank of Japan made its intention to raise interest rates public, the crypto market has not experienced any notable surges. Since Friday, the global cryptocurrency market cap has retraced by over 7%.

Bitcoin posted slightly higher losses amid continued uncertainty since the announcement. The panic among investors is widespread across several sectors of the market, indicating the latest downturn was not solely due to leverage.

Recent data from CryptoQuant revealed that exchanges saw a significant inflow in the last 24 hours. As a result, exchange reserves are increasing. Other metrics indicate that the influx was not entirely from small wallets.

Market data show that the Coinbase Premium Index is currently negative. The metric typically reflects whales’ actions at a given time. In the last 24 hours, it dropped by over 300%, indicating that large wallets led the latest selloff.

Bitcoin IFP. A Ticking Time Bomb

While the bulls count the losses in the spot market, those who went long on Bitcoin lost $194 million in the last 24 hours.

The highlighted data reflects what happened, the possible cause, and how it affected traders. However, an event that took place beneath the radar may spell a massive decline for Bitcoin.

XWIN Research Japan noted that the Inter-Exchange Flow Pulse (IFP) turned red. The metric measures Bitcoin’s movement between exchanges, serving as a proxy for internal market liquidity and capital circulation. When it is high, key functions like arbitrage and liquidity provision run smoothly, and prices remain stable as the order books remain thick.

However, when it is low, the highlighted functions experience difficulty as market flow weakens, resulting in prices becoming more sensitive to relatively small trades.

The earlier correction may be a sign of negative IFP. In either case, it’s worth noting that weakened inter-exchange flow pulses do not always result in massive downtrends, nor do they necessarily signal recovery. In a nutshell, Bitcoin will see stronger price swings in the coming days, and it could be upward or downward.

Nonetheless, considering the bearish sentiment across the market, the declining IFP may spell a steeper downtrend for the apex coin.

The effect will also spread into derivatives, making leveraged trading riskier.

Away from onchain data, Bitcoin may end Monday around $86k. Previous price action suggests a higher likelihood of further recovery from this key level.

The post The Worst is Yet to Come. Bitcoin IFP Indicate Dangerous Liquidity Slowdown appeared first on CoinTab News.

Market Opportunity
Bitcoin Logo
Bitcoin Price(BTC)
$66,623.04
$66,623.04$66,623.04
-1.48%
USD
Bitcoin (BTC) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact crypto.news@mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Why This New Trending Meme Coin Is Being Dubbed The New PEPE After Record Presale

Why This New Trending Meme Coin Is Being Dubbed The New PEPE After Record Presale

The post Why This New Trending Meme Coin Is Being Dubbed The New PEPE After Record Presale appeared on BitcoinEthereumNews.com. Crypto News 17 September 2025 | 20:13 The meme coin market is heating up once again as traders look for the next breakout token. While Shiba Inu (SHIB) continues to build its ecosystem and PEPE holds onto its viral roots, a new contender, Layer Brett (LBRETT), is gaining attention after raising more than $3.7 million in its presale. With a live staking system, fast-growing community, and real tech backing, some analysts are already calling it “the next PEPE.” Here’s the latest on the Shiba Inu price forecast, what’s going on with PEPE, and why Layer Brett is drawing in new investors fast. Shiba Inu price forecast: Ecosystem builds, but retail looks elsewhere Shiba Inu (SHIB) continues to develop its broader ecosystem with Shibarium, the project’s Layer 2 network built to improve speed and lower gas fees. While the community remains strong, the price hasn’t followed suit lately. SHIB is currently trading around $0.00001298, and while that’s a decent jump from its earlier lows, it still falls short of triggering any major excitement across the market. The project includes additional tokens like BONE and LEASH, and also has ongoing initiatives in DeFi and NFTs. However, even with all this development, many investors feel the hype that once surrounded SHIB has shifted elsewhere, particularly toward newer, more dynamic meme coins offering better entry points and incentives. PEPE: Can it rebound or is the momentum gone? PEPE saw a parabolic rise during the last meme coin surge, catching fire on social media and delivering massive short-term gains for early adopters. However, like most meme tokens driven largely by hype, it has since cooled off. PEPE is currently trading around $0.00001076, down significantly from its peak. While the token still enjoys a loyal community, analysts believe its best days may be behind it unless…
Share
BitcoinEthereumNews2025/09/18 02:50
USD/JPY Intervention: How Verbal Warnings Dramatically Slowed the Japanese Yen’s Slide

USD/JPY Intervention: How Verbal Warnings Dramatically Slowed the Japanese Yen’s Slide

BitcoinWorld USD/JPY Intervention: How Verbal Warnings Dramatically Slowed the Japanese Yen’s Slide TOKYO, March 2025 – Japanese authorities’ carefully calibrated
Share
bitcoinworld2026/03/30 23:25
USDH Power Struggle Ignites Stablecoin “Bidding Wars” Across DeFi: Bloomberg

USDH Power Struggle Ignites Stablecoin “Bidding Wars” Across DeFi: Bloomberg

A heated contest for control over a new dollar-pegged token has set the stage for what analysts say could define the next phase of the stablecoin industry. According to Bloomberg, a bidding war unfolded on Hyperliquid, one of crypto’s fastest-growing trading platforms, with the prize being the right to issue USDH, its native stablecoin. The competition drew some of the sector’s most prominent names, including Paxos, Sky, and Ethena, who later withdrew their bid, alongside the lesser-known Native Markets, a startup backed by Stripe stablecoin subsidiary Bridge. Hyperliquid Stablecoin Race Shows Branding and Partnerships Matter as Much as Tech Over the weekend, Hyperliquid’s validators, the contributors who secure the network and vote on key decisions, awarded the USDH contract to Native Markets over the weekend. Despite its relatively new status, the firm’s connection with Stripe helped it outpace more established rivals. Stablecoins underpin decentralized finance by providing a dollar-backed medium for collateral, settlement, and payments across applications. What began as a grassroots, community-led sector has evolved into a battleground for institutions and payment companies seeking revenue from interest on reserves. Circle, for example, shares proceeds from its USDC with Coinbase under a partnership designed to stabilize earnings during market swings. The Hyperliquid contest offered a rare glimpse into just how intense competition has become. Paxos pledged to take no revenue until USDH surpassed $1 billion in circulation. Agora offered to share 100% of net revenue with Hyperliquid, while Ethena put forward 95%. All were outbid by Native Markets, whose ties to Stripe’s $1.1 billion acquisition of Bridge and subsequent rollout of the Tempo blockchain positioned it as a strong contender. “Every stablecoin issuer is extremely desperate for supply,” said Zaheer Ebtikar, co-founder of Split Capital. “They are willing to publicly announce how much they are willing to offer. It just shows it’s a very tough business for stablecoin issuers.” While USDC remains dominant on Hyperliquid with more than $5.6 billion in deposits, the arrival of USDH could shift flows and revenue dynamics. Paxos co-founder Bhau Kotecha said the firm sees the exchange’s growth as an important opportunity, while Agora’s co-founder Nick van Eck warned that awarding the contract to a vertically integrated issuer risked undermining decentralization. Regulatory positioning also factored into the debate. Paxos operates under a New York trust charter and is seeking a federal license, while Bridge holds money transmitter approvals in 30 states. Native Markets, in a blog post, cited regulatory flexibility and deployment speed as reasons for its selection. Hyperliquid said the strong engagement from its community validated the process. Circle CEO Jeremy Allaire dismissed concerns over USDC’s status, noting on X that competition benefits the ecosystem. Analysts suggested that fears of centralization may be exaggerated, noting that Hyperliquid is likely to remain neutral and support multiple stablecoins. Still, the contest over USDH highlighted a new reality for stablecoins: branding, partnerships, and business strategy are becoming as decisive as technology. Native Markets Secures USDH Stablecoin Mandate on Hyperliquid Hyperliquid has concluded its governance vote for the USDH stablecoin, awarding the mandate to Native Markets after a closely watched process that drew weeks of community debate and rival proposals. USDH, described by Hyperliquid as a “Hyperliquid-first, compliant, and natively minted” dollar-backed token, is intended to reduce the platform’s dependence on USDC and strengthen its spot markets. Validators on the decentralized exchange voted in favor of Native Markets, a relatively new player backed by Stripe’s Bridge subsidiary, over established contenders including Paxos and Ethena. The outcome followed a string of proposals offering aggressive revenue-sharing terms to win validator support, underscoring the scale of incentives attached to controlling USDH. Hyperliquid’s exchange has become a critical hub for stablecoin liquidity, with $5.7 billion in USDC, around 8% of its total supply, currently held on the network. At prevailing treasury yields, that translates to an estimated $200 million to $220 million in annual revenue for Circle, underlining why a native alternative could be transformative. Hyperliquid’s validators, who secure the network and vote on key decisions, selected Native Markets following an on-chain governance process that concluded September 15. Native Markets has laid out a phased rollout for USDH, beginning with capped minting and redemption trials before expanding into spot markets. Its reserves will be managed in cash and treasuries by BlackRock, with on-chain tokenization through Superstate and Bridge. Yield from those reserves will be split between Hyperliquid’s Assistance Fund and ecosystem development. The launch of USDH comes as Hyperliquid records record profits from perpetual futures trading, with $106 million in revenue in August alone, and prepares to slash spot trading fees by 80% to bolster liquidity. Analysts say the move positions Hyperliquid to capture more of the stablecoin economics internally, marking a significant step in its bid to rival the largest players in decentralized finance
Share
CryptoNews2025/09/18 00:48