Bitcoin News: Supply Squeeze Looms as OTC Desks Drain Amid Market Volatility

In the world of cryptocurrency, developments are always rapid and unpredictable. Recent events have highlighted a potential supply squeeze on the horizon for Bitcoin, amidst a broader market downturn. Here’s a closer look at what’s happening and what it could mean for the future of the digital asset.

Bitcoin OTC Desks Are Draining – Supply Squeeze On The Horizon?

Bitcoin has dropped below the $85,000 level as selling pressure returns across the crypto market. After several days of tight consolidation just under the $88K resistance zone, bearish momentum has regained control, dragging prices lower. The broader financial landscape remains tense, with trade war fears and mounting uncertainty continuing to weigh heavily on risk assets, including Bitcoin. Global markets are facing increasing volatility, driven by geopolitical tensions and fragile investor sentiment. As traditional markets falter, the crypto space has followed suit, showing signs of weakness amid macro headwinds. Despite the pullback, there may be a silver lining as some traders watch for signs of deeper corrections.

Bitcoin Resists Macro Pressure, Diverges From Stock Market Downturn

Bitcoin is trading below a crucial demand zone as bears regain control, ending a brief period of optimism. Selling pressure has resumed, highlighting ongoing uncertainty around risk assets. Despite this, Bitcoin has shown subtle signs of strength compared to traditional markets struggling with macroeconomic instability. The S&P 500 and global stock markets have suffered due to tariff tensions and rising inflation, with the S&P 500 falling sharply. In contrast, Bitcoin managed to close the week with a modest gain of +0.4%.

$100M Fine Reversed: Trump Pardon Fuels Bitcoin Price Defense

Bitcoin gains support as former President Donald Trump reignites optimism in the crypto market by pardoning BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed. These high-profile figures pleaded guilty in 2022 to Bank Secrecy Act violations related to BitMEX’s failure to implement anti-money laundering protocols, resulting in a landmark $100 million fine. Hayes tweeted his gratitude to President Trump, while Delo called the charges politically motivated. This move is being interpreted as a symbolic shift toward crypto-friendly policymaking.

Maple CEO Introduces Bitcoin-Backed Loans for Institutional Lending

Maple CEO is pioneering asset-backed lending on-chain, combining traditional finance with blockchain technology. His company lends to institutions like trading firms and hedge funds, using Bitcoin as collateral. Borrowers receive stablecoins directly into their wallets, while the collateral is held in liquid digital assets. This concept has gained interest from high-net-worth individuals and fixed-income investors seeking reliable returns in the digital asset space.

Bitcoin Holds $83.6K After Trump Pardons BitMEX Founders

Bitcoin is finding support around $83,600 as former President Donald Trump reignites Optimism in the crypto market by pardoning BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed. The three pleaded guilty in 2022 to Bank Secrecy Act violations related to BitMEX’s failure to implement anti-money laundering measures, which resulted in a $100 million fine from the CFTC and FinCEN. Hayes tweeted his gratitude to Trump, while Delo described the charges as politically motivated.