Foreign media, citing on-chain data and fund flow indicators, reported that Bitcoin is under short-term pressure, with the market testing support around $70,000. The article argues that cooling sentiment, weakening US buying, and continued outflows from spot ETFs are eroding the bulls' dominance.
ETF outflows and weakening US demand
The article mentions that the Coinbase premium index recently fell to a more than three-month low, indicating a significant slowdown in spot demand from US market participants. Meanwhile, US spot Bitcoin ETFs saw net outflows of over $1.4 billion this week, further increasing downward pressure on prices.
The article also cites on-chain position data, stating that over 45% of short-term holders are already experiencing paper losses. These positions are more likely to see concentrated selling as prices continue to fall, amplifying market volatility.
Stablecoin outflows reflect risk aversion.
The report, citing data from DeFiLlama, states that over $2 billion in stablecoins have recently flowed out of the market. The article interprets this change as a defensive move following a decline in risk appetite, indicating that some funds are reducing their exposure to crypto assets.
Against this backdrop, Bitcoin sentiment indicators have entered the "extreme fear" zone. The article argues that this typically signifies a stronger deleveraging process in the market, making the $70,000 support level more difficult to hold.
Hyperliquid absorbs some liquidity.
Alongside the overall withdrawal of funds, some on-chain liquidity shifted to Hyperliquid. The article states that during the same period, the stablecoin supply on the Hyperliquid platform increased by over 8.25%, corresponding to an inflow of over $500 million.
According to the article, the HYPE/BTC ratio rose by more than 10% this week, with a cumulative increase of 63% in the second quarter. This is seen as a signal that funds are shifting from Bitcoin to the on-chain derivatives ecosystem.
The article also mentions that the Hyperliquid platform currently holds over $8 billion in USDC. Due to its partnership with Circle, this USDC can generate revenue, a portion of which is expected to be used for buybacks. Based on this, the article estimates that this mechanism could generate an additional buyback demand of over $700,000 per day.
Overall, this commentary argues that Bitcoin still faces downward pressure in the short term, while the flow of stablecoins to Hyperliquid is reinforcing the market's internal fund rotation characteristics.
