To my knowledge, the continuum hypothesis basically says two things:
(1) We want to consider fluid elements whose volume is large enough to contain enough molecules such that average value of its properties is not affected by molecular fluctuations.
(2) The fluid element must be small enough in comparison to the dimensions of the body of fluid under study such that a fluid element can essentially be modeled as a point in the fluid body.
I do not see how these ideas relate to the idea of treating fluid as a continuum. Why does satisfying these two conditions equate to treating a fluid as a continuum?