According to a report from CryptoQuant and DeFiLlama, Bitcoin has fallen closer to $70,000 after a week that saw more than $10 billion wiped from the cryptocurrency market. Sentiment has dropped into extreme fear, with over 45% of short-term holders now underwater and U.S. institutional demand weakening sharply. The moves come as spot Bitcoin ETFs recorded over $1.4 billion in net outflows this week alone.

$10 billion evaporated as sentiment hits 'extreme fear'

The report notes that extreme fear readings have historically preceded capitulation events in Bitcoin markets. With $10 billion+ in market value erased, the shift from greed to fear has been abrupt. CryptoQuant data shows the Coinbase Premium Index—a measure of U.S.-based buying pressure—dropped to a three-month low of -0.17, indicating that American investors are leading the sell-off.

Coinbase Premium at a three-month low: weak U.S. demand

The Coinbase Premium Index's slide to -0.17 is the lowest in over 90 days, according to CryptoQuant. This weakness shows up clearly in ETF flows: spot Bitcoin ETFs have seen $1.4 billion in net outflows this week. As the source reports, this combination suggests that institutional interest is fading, leaving the $70,000 support level increasingly difficult to defend.

The $2 billion stablecoin flight to Hyperliquid

DeFiLlama data shows that more than $2 billion in stablecoins have exited the market, reflecting classic flight-to-safety behavior. However, not all liiquidity is fleeing crypto entirely. According to the report, over $8 billion in USDC now sits on the Hyperliquid platform, where a partnership with Circle generates yield. A portion of that yield is expected to flow into buybacks, creating roughly $700,000 per day in additional buyback pressure for HYPE.. The HYPE/BTC ratio has risen over 10% this week, signaling a rotation of capital away from Bitcoin and into altcoins.

What lies beneath $70k? Unanswered questions on support and panic selling

The source leaves several critical questions open. Will $70,000 hold, or is a more severe correction ahead? With more than 45% of short-term holders underwater, panic selling could accelerate—testing the conviction of retail participants. The sustainability of HYPE's buyback pressure is also unverified beyond rough estimates. additionally, while ETF outflows are clear, the source does not provide a breakdwn of whether this capital is rotating into stablecoins or leaving the broader asset class entirely. until those questions are answered, the direction of Bitcoin’s next move remains uncertain.