Story
Bitcoin Reclaims $60,000 After 14% Quarterly Loss Driven by Record ETF Outflows
Summary
The leading cryptocurrency saw a modest rebound after suffering its worst monthly ETF outflows on record and a 14% quarterly decline, as investors weigh a hawkish Federal Reserve and rotate into other risk assets.
Bitcoin rose above the key $60,000 level on Wednesday, staging a partial recovery a day after closing out a difficult quarter. The modest gains follow a period of intense selling pressure that saw the digital asset log a 14% loss for the June quarter, driven by persistent institutional outflows and broader market concerns over U.S. interest rate policy.
By 5:55 PM ET, Bitcoin was trading up approximately 3.7% at $60,807.4, according to Investing.com data. The bounce came after the cryptocurrency briefly touched a low of $57,803.0 earlier in the session.
Record ETF Outflows Signal Waning Demand
A primary driver of the recent weakness has been heavy selling from U.S. spot Bitcoin exchange-traded funds (ETFs). These investment vehicles, which launched in January 2024, experienced their largest monthly outflows on record in June.
- Net outflows from the funds totaled $4.5 billion for the month, according to data cited from SoSoValue.
- The selling was widespread, with BlackRock’s iShares Bitcoin Trust (IBIT), the largest fund by assets, accounting for $3.55 billion of the total withdrawals.
- This sustained exodus marks a significant reversal from the strong inflows seen earlier in the year and indicates cooling institutional appetite for the asset.
AdMacro Headwinds and Analyst Downgrades
Broader economic factors have also weighed on cryptocurrency markets. A hawkish stance from the U.S. Federal Reserve, signaling the potential for higher-for-longer interest rates, has increased the opportunity cost of holding non-yielding assets like Bitcoin. This has been compounded by a market rotation into other risk assets, particularly artificial intelligence-linked stocks.
Reflecting the bearish sentiment, analysts at Citi on Tuesday slashed their 12-month price targets for both Bitcoin and Ether. The bank lowered its Bitcoin forecast to $82,000 from a previous $112,000 and cut its Ether target to $2,240 from $3,175, citing weakening investor demand and the negative ETF flows.
Other major cryptocurrencies also posted gains on Wednesday, tracking Bitcoin's recovery. Ether climbed 3.8%, while Solana and Cardano saw stronger bounces of 6.8% and 9.2%, respectively.