Bitcoin Reclaims $60,000 After 14% Quarterly Loss Amid Record ETF Outflows

Bitcoin rose above the $60,000 level on Wednesday, staging a partial recovery a day after closing a quarter marked by heavy losses. The rebound comes amid persistent pressure from substantial institutional outflows and investor concerns over a hawkish U.S. interest rate policy.

By 17:55 ET (21:55 GMT), the world's largest cryptocurrency was up 3.7% to $60,807.4, according to Investing.com data. The move higher followed a dip to a 22-month low of $57,803.0 earlier in the session.

Steep Losses and Institutional Selling

The daily gain provides little relief from the cryptocurrency's recent poor performance. Bitcoin recorded a 14% loss for the June quarter and is down 32% year-to-date, trading more than 50% below its all-time high hit in October.

A primary driver of the recent weakness has been significant selling from U.S. spot Bitcoin exchange-traded funds (ETFs). These investment vehicles suffered their largest monthly outflows on record in June, with investors pulling $4.5 billion, according to data from SoSoValue. The withdrawals are extending a losing streak that could mark an eighth consecutive week of outflows.

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Market Headwinds and Analyst Revisions

Broader market sentiment has been dampened by a hawkish stance from the U.S. Federal Reserve. Expectations for higher-for-longer interest rates increase the opportunity cost of holding non-yielding assets like Bitcoin. Investors have also shown a growing preference for AI-related stocks over more speculative crypto assets.

Reflecting the challenging environment, 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 key reasons for the revision. In a bear-case scenario, Citi projects Bitcoin could fall as low as $53,000.

The broader crypto market saw similar gains on Wednesday, with major altcoins such as Ether, Solana, and Cardano also rising, tracking Bitcoin's lead.