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Bitcoin Climbs Above $60,000, Rebounding From 14% Quarterly Decline
Summary
Bitcoin's price rose nearly 4% on Wednesday, reclaiming a key psychological level one day after concluding a quarter with a 14% loss. The recovery comes amid persistent headwinds from expectations of higher interest rates and significant outflows from cryptocurrency investment funds.
Bitcoin's value increased by approximately 3.7% on Wednesday, pushing its price to $60,807.4 by the evening. The move marked a notable recovery after the world's largest cryptocurrency briefly touched a 22-month low of $57,803 earlier in the day. This rebound followed the conclusion of a difficult quarter in which Bitcoin recorded a 14% loss, bringing its year-to-date decline to 32%.
The recent downturn in the crypto market has been influenced by several factors. Analysts point to concerns over rising U.S. interest rates, as the Federal Reserve has signaled a hawkish stance, making non-yielding assets like Bitcoin less attractive to some investors. A broader market preference for assets linked to artificial intelligence has also reportedly diverted capital away from cryptocurrencies.
Institutional sentiment has also shown signs of weakness, particularly in the U.S. spot Bitcoin exchange-traded funds (ETFs). These funds experienced their largest monthly outflows since their inception, with investors withdrawing a reported $4.5 billion in June. This trend of outflows has been consistent, with the ETFs potentially heading for an eighth consecutive week of net withdrawals.
AdDespite the recent pressure on Bitcoin, other major cryptocurrencies also saw gains on Wednesday. Ether, the second-largest digital asset, climbed 3.8%, while others like Solana and Cardano posted even larger increases of 6.8% and 9.2%, respectively, tracking the broader market's upward movement.