Story
Bitcoin Recovers to Over $60,000 After Significant Quarterly Loss
Summary
The leading cryptocurrency rose nearly 4% on Wednesday, reclaiming the key $60,000 level a day after closing a quarter with a 14% loss. The recovery comes amid persistent pressure from expectations of higher U.S. interest rates and significant outflows from spot Bitcoin ETFs.
Bitcoin's price increased by nearly 4% on Wednesday, trading at approximately $60,807. The move pushed the cryptocurrency back above the significant $60,000 threshold. This gain followed a brief dip earlier in the day to what was reported as a 22-month low of $57,803.
The rebound comes directly after a challenging period for the digital asset. Bitcoin recorded a 14% loss for the June quarter, contributing to a year-to-date decline of 32%. The cryptocurrency remains more than 50% below its record high, according to the source material.
Recent market pressure on Bitcoin has been attributed to several factors. Hawkish signals from the U.S. Federal Reserve regarding potential interest rate hikes have reportedly made non-yielding assets like cryptocurrencies less appealing to some investors. Additionally, a market preference for assets linked to artificial intelligence and general risk aversion have been cited as contributing to the dampened sentiment.
AdInstitutional investment vehicles have also reflected this downward trend. U.S. spot Bitcoin exchange-traded funds (ETFs) experienced their largest monthly outflows since their launch, with a reported $4.5 billion withdrawn in June. This continues a pattern of institutional selling, with ETFs potentially marking an eighth consecutive week of net outflows.
Following Bitcoin's lead, the broader cryptocurrency market also saw modest gains. Other major digital assets, including Ether, XRP, Solana, and Cardano, posted increases on Wednesday after also experiencing steep quarterly losses.