Bitcoin Falls to $60,000 to Start the Week

Bitcoin fell to $60,000 on Monday, down over 4% to $61,211 according to Coin Metrics

It plummeted to $60,666.30 earlier, its lowest point over a month. It has experienced a decline of over 8% in the past week.

CoinShares reported that digital asset investment products experienced a second consecutive week of outflows.

Crypto investment products experienced their lowest trading volumes globally last week since the U.S. bitcoin ETFs were introduced in January.

“Over the past two weeks, there has been a $1.2 billion outflow from crypto ETFs, all of which commenced after the FOMC meeting.”

James Butterfill, the director of research at the crypto-focused asset manager, stated to CNBC, “Our conviction is that the sentiment for crypto is being adversely affected by the ongoing pessimism regarding the frequency of rate cuts.”

“The Federal Reserve has stated that they require additional evidence of inflation’s decline before they become more dovish.

Consequently, any macroeconomic statement emphasizing inflation’s continued decline will likely bolster prices, while an inflationary date will likely negatively impact prices.”

Eleanor Gaywood, the director of strategy at Coincover, stated that the personal consumption expenditure index, the Federal Reserve’s preferred inflation gauge, is typically anticipated to cause market jitters this Friday.

She said that indications of a rate reduction in September could alleviate investor anxiety and stabilize the bitcoin price.

Furthermore, the number of long liquidations in Bitcoin increased, necessitating traders to sell their assets at market value to satisfy their debts.

According to CoinGlass, centralized exchanges have experienced $97.83 million in long Bitcoin liquidations over the past 24 hours.

Bitcoin led to a general decline in the value of cryptocurrencies. Ether experienced a 4% decline, while the token associated with the smart contracts platform Solana experienced a 3% decline, the payments token XRP experienced a 1% decline, and the meme token dogecoin experienced a nearly 5% decline.

Coinbase experienced a nearly 4% decline in equities, while MicroStrategy experienced a more than 5% decline. Across the board, the price of miners decreased.

CryptoQuant predicted that Bitcoin could revert to $60,000 after it breached the critical support level of $65,800 last week due to a lack of bullish momentum.

The company’s on-chain data indicates that traders have been decreasing their holdings since Bitcoin’s peak at $70,000 in late May and have yet to resume purchasing.

Bitcoin has experienced a decline of nearly 10% for the month. It momentarily reached the $71,000 mark at the beginning of June; however, it has since experienced a consistent decline.

Since the middle of March, when it attained its all-time high of $73,797.68, it has been confined to a narrow range between $60,000 and $70,000.

Investors and analysts still anticipate the cryptocurrency will achieve another record this year. Ryan Rasmussen, an analyst at Bitwise Asset Management, described the price action as “bullishly choppy.”

“There is a market-changing tailwind behind crypto that is not reflected in the choppy price action on a week-to-week basis,” he stated, citing bitcoin’s 43% year-to-date gain, progress on ether ETFs, and the political tides moving in crypto’s favor.

“Bitcoin has never been more appealing from a long-term investment perspective than it is now.”