After BTC fell below $63000, the cryptocurrency market experienced its most intense leverage clearance since this round of adjustment.
Data shows that in the past 24 hours, the entire network has experienced a stock explosion of 2.544 billion US dollars, of which 2.404 billion US dollars were from multiple orders, accounting for as much as 94%; ETH exploded by 1.136 billion US dollars, BTC exploded by 774 million US dollars. The Fear Greed Index (FGI) synchronously fell to 17, entering the extreme panic zone.
At the same time, the Bitcoin spot ETF has had a net outflow for six consecutive weeks, with a cumulative outflow of $6.4 billion in a single month, setting a historical record. Mainstream currencies are generally experiencing capital outflows, with BTC, ETH, SOL, and DOGE all showing significant net outflows.
A noteworthy change is emerging in the market:
When high leverage funds continue to sell out and spot funds continue to flow out, more and more funds are urgently turning to low volatility products for hedging.
Instead of continuing to endure severe fluctuations, many investors have begun to choose to park some of their idle funds in stablecoin wealth management, pledge income, and exchange earning products, waiting for market trend signals to reappear.
Where are the funds flowing towards?
OKX
Recently, the focus has been on the Jumpstart activity, including the subscription of popular projects such as ZAMA and MON. Users can participate in subscription and obtain additional token rewards through assets such as OKB and ETH, while Earn coin earning products remain open.
Binance
Binance has recently been promoting Earn and the Wealth Management Arena. The highest yield of USDC current account is about 6.12%, and the highest yield of USDT current account is about 5.15%. In addition, dual currency investment, ETH/SOL staking, and guaranteed coin earning products remain open.
Bitget
The activity of Bitget Simple Earn continues to increase, with USDT and USDC current returns generally maintaining in the range of 5% -7%. Some popular currency activities have higher returns, and are accompanied by interest rate coupons and new user reward activities.
What should we focus on next?
For the market, the most important thing now is not to guess the bottom, but to observe whether the risk release has ended.
Focus on three key indicators:
① ETF funds have resumed net inflows;
② The scale of inventory explosion across the entire network has significantly decreased;
③ BTC funding rates have returned to the healthy positive range.
Before these signals appear, the market may still maintain a high volatility state. For funds that are temporarily not involved in directional trading, yield oriented products are becoming an important hedging option during this round of adjustment.
Risk Warning: The content of this article is for market information sharing only and does not constitute any investment advice. The price of digital assets fluctuates greatly, and the yield of wealth management products may adjust with market changes. Please pay attention to the lock up rules, redemption conditions, and platform risks, and participate cautiously.
