Bitcoin recorded $91 million in capital outflows as traders shifted into stablecoins and cash equivalents, the largest single-asset exit across crypto markets.
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Bitcoin sees $91M outflow as traders rotate into stablecoins and cash
Bitcoin fell 2.7% to $58,649 as traders pulled $91 million into stablecoins and cash, Cryptometer data showed at 1:30 a.m. UTC on July 1.
"Traders should brace for a protracted sell-off in the U.S. dollar that could mirror the collapse following the 2000 internet bubble," Richard Cochinos, chief FX strategist at RBC Capital Markets, said in a note. A weaker dollar has historically coincided with Bitcoin rallies as global liquidity rotates into alternative assets.
The $91 million outflow from Bitcoin outpaced all other crypto assets during the period, with capital shifting primarily into Tether's USDT and U.S. dollar cash equivalents, Cryptometer data shows. The move comes as Bitcoin's inverse correlation with the dollar reached its most negative level since early 2023, strengthening the case for a potential macro-driven reversal.
Bitcoin is currently forming a falling wedge pattern on the daily and weekly charts, a classic bullish reversal structure that has guided BTC from its all-time high near $126,000 toward the $103,000 support zone. A breakout above the wedge's resistance could trigger a 20% rally, initially targeting $113,000, according to RBC Capital Markets.
Long-Term Holders Capitulate as On-Chain Metrics Flash Warning
The capital rotation comes as long-term Bitcoin holders sell at a loss. The Long-Term Holder Spent Output Profit Ratio dropped to 0.615 on June 30, the lowest since July 2023, according to Glassnode data. The metric, which tracks whether long-term holders are spending coins at a profit or loss, suggests many are capitulating as BTC trades well below its all-time high.
Despite the bearish signal, some on-chain indicators point to resilience elsewhere in crypto. Hyperliquid, the layer-1 blockchain for perpetuals trading, repurchased $135 million of HYPE tokens over 90 days while $64 million was unlocked for the team, creating a net buy-side imbalance, according to an on-chain analyst. HYPE investment products attracted $27.9 million in inflows last week, their strongest weekly showing since late May, SoSoValue data shows.
Dollar Weakness Could Fuel a Bitcoin Rebound
The macro backdrop may offer a countervailing force. The U.S. Dollar Index is forming a symmetrical triangle pattern on the weekly chart, showing signs of exhaustion after failing to reclaim its 200-week exponential moving average near 101.5. A breakdown from this formation could send DXY toward the 93.50 support zone, a decline of 6 percent to 7 percent, according to RBC.
If the dollar sell-off materializes, Bitcoin's inverse correlation with the greenback — now the most negative since early 2023 — could ignite a renewed rotation into crypto. RBC's analysis suggests that when capital diversified after the dot-com bust, the dollar suffered a 40 percent peak-to-trough decline from 2001 to 2008, a scenario that could repeat if global investors reduce exposure to overpriced U.S. assets.
This article is for informational purposes only and does not constitute investment advice.
[1] Bitcoin Sees $91M Outflow as Traders Rotate Into Stablecoins and Cash[2] HYPE Drops 17% From Record High but Hyperliquid Fundamentals Remain Strong[3] Bitcoin Price Outlook: “Dot-Com-Like” Dollar Warning Poses 20% BTC Rally Setup[4] Bitcoin sees $91M outflow as traders shift to stablecoins and cash amid caution - Pluang[5] A subsidiary of Vistra Energy announced that its revolving credit facility commitment has been increased to 55 billion USD. - Bitget
