Story
Bitcoin Rises Above $60,000 but Heads for Second Consecutive Quarterly Loss
Summary
Bitcoin's price ticked above $60,000 on Monday, offering a minor recovery for the cryptocurrency. However, it remains on track for a significant quarterly loss, driven by persistent outflows from U.S. spot exchange-traded funds and a hawkish Federal Reserve outlook.
Bitcoin saw a modest increase on Monday, climbing to over $60,300. Despite the small gain, the world's largest cryptocurrency is on pace for a 13% quarterly loss, which would mark its second consecutive quarter of declines.
The downward pressure on Bitcoin is largely attributed to sustained outflows from U.S.-listed spot exchange-traded funds (ETFs). These funds have reportedly experienced seven straight weeks of net outflows, with approximately $1.8 billion withdrawn in the prior week alone. Total monthly outflows have surpassed $4 billion, signaling weakening institutional demand amid market volatility.
Broader macroeconomic factors have also contributed to the challenging environment for cryptocurrencies. A stronger U.S. dollar and growing expectations that the Federal Reserve will maintain a tight monetary policy have weighed on risk assets like Bitcoin. Recent economic data suggesting resilient inflation and labor conditions has led markets to price in the possibility of the central bank keeping interest rates higher for longer.
AdIn related news, the enterprise value of the company Strategy has reportedly fallen below the value of its substantial Bitcoin holdings for the first time. This metric has been closely watched by investors as a potential indicator of confidence in the company's cryptocurrency-focused strategy. Other cryptocurrencies, including Ethereum, Solana, and Cardano, also posted gains on Monday, following Bitcoin's upward movement.