Bitcoin Rebounds Above $60,000 After 14% Quarterly Loss and Record ETF Outflows

Bitcoin reclaimed the key $60,000 level on Wednesday, staging a partial recovery after a brutal second quarter that saw the cryptocurrency lose 14% of its value amid persistent institutional outflows and concerns over U.S. monetary policy.

By 17:55 ET, Bitcoin was trading up approximately 3.7% at $60,807.4, according to Investing.com data. The bounce came after the asset briefly touched a 22-month low of $57,803.0 earlier in the session, highlighting the market's continued volatility.

Headwinds from ETF Outflows and Fed Policy

The recent price weakness has been driven by significant selling pressure from U.S. spot Bitcoin exchange-traded funds (ETFs), which experienced their worst month on record in June. This institutional retreat coincides with a hawkish stance from the U.S. Federal Reserve, which has signaled potential interest rate hikes that increase the opportunity cost of holding non-yielding assets like Bitcoin.

Key figures from the recent ETF activity underscore the bearish sentiment, according to data from SoSoValue:

• U.S. spot Bitcoin ETFs saw a record $4.5 billion in net outflows in June.
• The funds experienced nine consecutive days of net withdrawals, extending what could be an eighth straight week of outflows.
• BlackRock’s iShares Bitcoin Trust (IBIT), the largest fund by net assets, accounted for $3.55 billion of the month's total outflows.

Ad

Analyst Outlook and Market Context

Reflecting the challenging conditions, analysts at Citi on Tuesday slashed their 12-month price target for Bitcoin to $82,000 from a previous $112,000. The bank cited weakening investor demand, negative ETF flows, and stalled U.S. crypto legislation as primary headwinds.

The recent rebound follows a difficult period for the digital asset. Bitcoin ended the June quarter down 14%, bringing its year-to-date losses to 32% and leaving it more than 50% below its all-time high.

Broader cryptocurrency markets also saw gains on Wednesday, with Ether rising 3.8% and Solana climbing 6.8%. The moves suggest a tentative, market-wide recovery, though investor sentiment remains cautious amid macroeconomic pressures and a recent rotation into AI-related assets.