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Bitcoin Slips Below $60,000, Heads for First Back-to-Back Quarterly Loss Since 2022
Summary
The price of Bitcoin fell below the $60,000 mark, putting it on track for its first consecutive quarterly loss since late 2022. The decline is attributed to persistent outflows from spot ETFs and investor concerns over rising interest rates.
Bitcoin's price fell below the $60,000 threshold on Tuesday, continuing a period of decline for the world's largest cryptocurrency. The asset traded down approximately 2.9% to $58,628.7, putting it on course for its second consecutive quarterly loss, a trend not seen since the fourth quarter of 2022. For the second quarter, Bitcoin is down about 14.1%.
The downward pressure is largely attributed to investor concerns over macroeconomic factors, particularly the prospect of rising interest rates. Following a hawkish tone from the Federal Reserve in its June meeting, expectations for at least one rate hike this year have grown. High-interest-rate environments tend to make non-yielding, speculative assets like cryptocurrencies less attractive to investors.
A significant driver of the recent price drop has been sustained capital outflows from spot Bitcoin exchange-traded funds (ETFs). These institutional investment vehicles have now seen outflows for eight consecutive weeks. On Monday alone, spot ETFs recorded an outflow of $231.1 million, bringing the total for June to $4.3 billion. Since the end of April, total outflows from these funds have reached approximately $6.7 billion, according to data from SoSoValue.
AdThe negative sentiment has extended to the broader cryptocurrency market, with most alternative coins also experiencing losses. Ether, the second-largest cryptocurrency, slipped 3% and is on track for a quarterly loss of more than 25%. Other major cryptocurrencies, including XRP, Solana, and Cardano, also posted declines.