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Bitcoin faces downside risk near $70k amid extreme fear and stablecoin liquidity shifts to HYPE.

Market News
30 May 2026
AMBCrypto
View Source
Bearish
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Bitcoin is showing signs of weakening momentum as traders have wiped over $10 billion from the market this week, pushing the price closer to the $70k support level. Sentiment has dropped into extreme fear, a historical sign of capitulation, while more than 45% of short-term holders are underwater, increasing the risk of panic selling. Additionally, U.S. demand is weak, evidenced by a drop in the Coinbase Premium Index and over $1.4 billion in outflows from Spot Bitcoin ETFs. Meanwhile, stablecoin liquidity is shifting towards Hyperliquid (HYPE), with over $2 billion exiting stablecoins overall but $500 million flowing into HYPE, supported by USDC inflows that may generate buyback pressure. These factors suggest bears currently have the advantage, making further downside for Bitcoin likely.

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