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Bitcoin Rises Above $60,000 but Remains on Track for Quarterly Loss
Summary
Bitcoin's price saw a modest recovery on Monday, but the cryptocurrency is still headed for its second consecutive quarterly decline amid persistent outflows from spot ETFs and a hawkish Federal Reserve outlook.
Bitcoin's price rose above the $60,000 mark on Monday, trading at approximately $60,303. Despite the daily gain, the leading cryptocurrency is on pace to end the quarter with a loss of around 13%, marking only the third time it has experienced back-to-back quarterly declines since its inception.
The downward pressure on the market is largely attributed to significant and sustained outflows from U.S. spot bitcoin exchange-traded funds (ETFs). Data indicates that these funds recorded their seventh consecutive week of net outflows, with approximately $1.8 billion withdrawn in the prior week alone. Monthly outflows have surpassed $4 billion, signaling weakening institutional demand.
Broader economic factors, including a stronger U.S. dollar and expectations that the Federal Reserve will maintain a tighter monetary policy, have also contributed to the challenging environment for cryptocurrencies. Market participants are looking ahead to the upcoming U.S. employment report for further clues on the central bank's policy path.
AdIn related news, the enterprise value of MicroStrategy, a major corporate holder of Bitcoin, reportedly fell below the market value of its bitcoin holdings for the first time. Following this development, the company announced a share repurchase program and authorized the potential sale of up to $1.25 billion in Bitcoin, which led to a jump in its share price.
Most other major cryptocurrencies, known as altcoins, followed Bitcoin's upward movement on Monday. Ethereum climbed by 3.5%, while other tokens including XRP, Solana, and Cardano also posted gains.