Illustration depicting the cryptocurrency Bitcoin.
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Bitcoin It continued its decline to $60,000 on Monday.
The price of the major cryptocurrency was last down more than 4% at $61,211.00, according to Coin Metrics. Earlier, it fell to $60,666.30, its lowest level in more than a month. Last week, it fell more than 8%.
Digital asset investment products posted a second straight week of outflows, according to CoinShares. Last week, cryptocurrency investment products saw their lowest trading volumes globally since the launch of US Bitcoin ETFs in January.
“We have now seen $1.2 billion in outflows from crypto ETFs over the past two weeks, all of which started after the FOMC meeting. We believe the continued pessimism around the number of interest rate cuts is weighing on crypto sentiment,” James Butterville, Head of Cryptocurrency Department. Research conducted by a cryptocurrency-focused asset manager told CNBC.
He added: “The Fed has indicated that it needs to see more evidence of lower inflation before it becomes more dovish, so any macro indicator that indicates inflation continues to fall is likely to support prices, and conversely, the history of inflation will influence prices.” On prices.
Eleanor Gaywood, head of strategy at Coincover, said there are often jitters in the market ahead of the Personal Consumption Spending Index, the Fed's preferred measure of inflation, which is due for release on Friday. She said signs of interest rate cuts in September may ease investors' nerves and stabilize the price of Bitcoin.
Bitcoin has been declining steadily since the beginning of June
Additionally, Bitcoin has seen a jump in long liquidations, forcing traders to sell their assets at the market price to settle their debts. In the past 24 hours, $97.83 million worth of bitcoin long liquidations took place across centralized exchanges, according to CoinGlass.
Cryptocurrencies fell broadly along with Bitcoin. ether The coin lost 4%, while the token is tied to the smart contract platform Solana Decreased by 3%, Payments Code XRP Decreased by 1%, meme symbol Dogecoin It fell almost 5%.
in stock, Coinbase decreased by about 4% Accurate strategy It fell by more than 5%. Miners were lower across the board.
Last week, CryptoQuant suggested that Bitcoin could fall back to $60,000, after breaking below the key support level of $65,800, due to a lack of upward momentum. The company's on-chain data shows that traders have reduced their holdings since Bitcoin reached $70,000 in late May and have not yet started buying again.
During the month, Bitcoin fell by approximately 10%. At the beginning of June, it briefly touched the $71,000 level, but has seen a steady decline since then. It has been largely stuck in a tight range between $60,000 and $70,000 since mid-March when it reached an all-time high of $73,797.68.
Investors and analysts still expect the cryptocurrency to set another record this year. Ryan Rasmussen, an analyst at Bitwise Asset Management, described the price action as “bullishly volatile.”
“There are variable market tailwinds behind cryptocurrencies that are not reflected in the volatile price action on a weekly basis,” he said, pointing to Bitcoin's 43% year-to-date gain, and progress in Ethereum and cryptocurrency ETFs. The political tide turned in its favor.
“By the long-term investment thesis, bitcoin has rarely been more attractive than it is now.”
