Bitcoin faces $70,000 test as $14.2 billion stablecoin contraction exposes demand weakness
Summary
Bitcoin’s recovery is under pressure as stablecoin supply shrank by $14.2 billion over 30 days, its steepest contraction since June 2022, while apparent demand fell by 284,000 BTC. Spot Bitcoin ETFs saw $1.6 billion in net outflows over 20 sessions, and the Coinbase Premium remained negative for 30 days, suggesting weak institutional demand. Recent buyers are increasingly underwater: the one-to-three-month holder profit margin fell from 33% to -6%, with an average purchase price near $79,500. Analysts warn that failed recovery attempts could prompt further selling and leave Bitcoin vulnerable to a decline toward $70,000.
