Bitcoin
Bitcoin drops to $60,000 at the start of the week
A photographic illustration representing the cryptocurrency bitcoin.
Jakub Porzycki | NurPhoto via Getty Images
Bitcoin continued its slide to $60,000 on Monday.
The price of the leading cryptocurrency fell more than 4% to $61,211.00, according to Coin Metrics. It previously fell to $60,666.30, its lowest level in more than a month. Last week it fell more than 8%.
Digital asset investment products recorded the second consecutive week of outflows, according to CoinShares. Last week, crypto 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, which began after the FOMC meeting. Our belief is that continued pessimism about the number of rate cuts is weighing on sentiment toward crypto,” James Butterfill, head of research at the crypto-focused asset manager, told CNBC.
“The Fed has indicated that it needs to see more evidence of falling inflation before becoming more dovish, so any macro statement that highlights inflation continuing to fall will likely support prices and, conversely, an inflationary date will weigh on prices,” he added. .
Eleanor Gaywood, head of strategy at Coincover, said there is often nervousness in the market ahead of the personal consumption expenditures index, the Fed’s preferred inflation gauge, due out this Friday. She said signs of a rate cut in September could calm investors’ nerves and stabilize the price of bitcoin.
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Bitcoin has been falling steadily since the beginning of June
Additionally, bitcoin has seen a jump in long liquidations, forcing traders to sell their assets at market prices to pay off their debts. Over the past 24 hours, there have been $97.83 million in bitcoin long liquidations on centralized exchanges, according to CoinGlass.
Cryptocurrencies fell broadly with bitcoin. Ether lost 4%, while the token linked to the smart contract platform Solana fell 3%, payments token XRP fell 1% and meme token dogecoin fell almost 5%.
In actions, Coin base fell almost 4%, and Microstrategy fell more than 5%. The miners were lower in every respect.
Last week, CryptoQuant suggested that bitcoin could fall back to $60,000 after breaking below key support at $65,800 due to a lack of upside momentum. The company’s network data shows that traders have been reducing their holdings since bitcoin hit $70,000 in late May and have not yet started buying again.
In the month, bitcoin fell almost 10%. In early June, it briefly reached the $71,000 level, but has been on a steady decline since then. It has largely been stuck in a narrow range between $60,000 and $70,000 since mid-March, when it reached its all-time high of $73,797.68.
Investors and analysts still expect the cryptocurrency to reach another record high this year. Ryan Rasmussen, an analyst at Bitwise Asset Management, called the price action “highly unstable.”
“There is a tailwind of market change behind crypto that is not reflected in choppy price action on a weekly basis,” he said, pointing to bitcoin’s 43% year-to-date gain, progress in ether and crypto ETFs. political tides changing in your favor.
“From a long-term investment thesis, bitcoin has rarely been more attractive than it is now.”