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Bitcoin Reclaims $60,000 Level After 14% Quarterly Decline
Bitcoin reclaimed the key $60,000 level on Wednesday, rising nearly 4% in a partial recovery from a volatile period for digital assets. The rebound comes a day after the world's largest cryptocurrency closed the June quarter with a 14% loss and briefly touched a 22-month low of $57,803, according to a report from Investing.com.
Record ETF Outflows Signal Investor Caution
The recent price pressure has been significantly influenced by institutional selling, particularly through U.S.-based spot Bitcoin exchange-traded funds (ETFs). These investment vehicles, which launched in early 2024, experienced their largest-ever monthly outflows in June, signaling waning investor appetite.
According to data from SoSoValue cited in the report, the outflows were substantial:
- A record $4.5 billion was pulled from U.S. spot Bitcoin ETFs in June.
- BlackRock’s iShares Bitcoin Trust (IBIT) bore the brunt of the selling, accounting for $3.55 billion of the month’s total withdrawals.
- The selling extended a losing streak to nine consecutive days of outflows by the end of the month.
AdDespite the recent turbulence, cumulative net inflows since the funds’ inception remain positive at more than $51 billion.
Macroeconomic Headwinds and Analyst Revisions
Broader market sentiment for risk assets, including crypto, has been dampened by the prospect of higher U.S. interest rates. The Federal Reserve’s hawkish tone at its June meeting has increased the opportunity cost of holding non-yielding assets like Bitcoin. This cautious outlook was reinforced Wednesday when Fed Chair Kevin Warsh declined to offer forward guidance on future policy moves.
Reflecting the more challenging environment, analysts at Citi recently lowered their 12-month price target for Bitcoin to $82,000 from $112,000, citing negative ETF flows and weakening demand. Wednesday's recovery was seen across the broader crypto market, with Ether, Solana, and Cardano also posting gains.