Bitcoin Reclaims $60,000 Level After Posting 14% Quarterly Loss

Bitcoin rose nearly 4% on Wednesday to reclaim the key $60,000 level, staging a partial recovery a day after closing a quarter with double-digit losses. The rebound occurred despite persistent headwinds, including expectations for higher U.S. interest rates and significant outflows from spot exchange-traded funds (ETFs).

By late Wednesday, Bitcoin was trading at $60,807.4, up 3.7%, after briefly touching a 22-month low of $57,803 earlier in the day, according to Investing.com data. The move provided some relief to investors after a challenging period for the digital asset.

A Quarter of Steep Declines

The leading cryptocurrency ended the June quarter down 14%, extending its year-to-date losses to 32%. The sell-off has been largely driven by macroeconomic factors, primarily a hawkish stance from the U.S. Federal Reserve, which has signaled it may raise interest rates at least once this year.

Higher interest rates increase the opportunity cost of holding non-yielding assets like Bitcoin, making them less attractive to investors. This sentiment has been compounded by a broader market rotation into high-performing artificial intelligence stocks, which offer clearer fundamental drivers compared to more speculative crypto assets.

Record ETF Outflows Signal Weakening Demand

A key indicator of weakening institutional sentiment has been the sustained selling pressure on U.S. spot Bitcoin ETFs. These funds suffered their largest-ever monthly net outflow of $4.5 billion in June, according to data cited by SoSoValue.

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This marked the continuation of a losing streak poised to become the eighth consecutive week of net withdrawals. Analysts at Citi recently cut their 12-month price target for Bitcoin to $82,000 from $112,000, citing the negative ETF flows and weakening investor demand as primary concerns.

Broader Crypto Market Follows Suit

Despite the recent turbulence, other major cryptocurrencies tracked Bitcoin's gains on Wednesday. The second-largest crypto, Ether, climbed 3.8%, while other altcoins posted stronger performances.

According to market data:

• Solana rose 6.8%
• Cardano was up 9.2%
• XRP added 2.5%

These gains came after most altcoins also registered steep losses in the prior session, reflecting the broad-based pressure on the digital asset market.