Bitcoin
Bitcoin drops below $60,000 at the start of the week
- The price of bitcoin fell below $60,000 on Monday for the first time since May 3.
- The leading cryptocurrency has been stuck in a tight range between $60,000 and $70,000 since March, when it hit an all-time high and quickly corrected lower.
- Stocks tied to the price of bitcoin, including Coinbase and MicroStrategy, also fell.
A photographic illustration representing the cryptocurrency bitcoin.
Jakub Porzycki | NurPhoto via Getty Images
Bitcoin continued its slide on Monday, dropping below $60,000 for the first time since May 3.
The price of the top cryptocurrency fell 7% to $59,562.54, according to Coin Metrics. Previously, it fell to $59,021.42, about 19% from its March record. Last week, it fell almost 11%.
Crypto investment products recorded the second consecutive week of outflows, according to crypto-focused asset manager CoinShares. Last week, they recorded the 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 CoinShares, 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.
See the graph…
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. In the last 24 hours, there have been $152.66 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 2%, along with payments token XRP. The meme token dogecoin fell almost 6%.
In actions, Coin base It is Microstrategy decreased by 6% and 7%, respectively. Almost all miners were in the red.
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 are confident that the cryptocurrency will recover and reach another record high this year. Ryan Rasmussen, an analyst at Bitwise Asset Management, called the price action “highly unstable.”
“There is a market-shifting tailwind behind crypto that is not reflected in choppy price action on a weekly basis,” he said, pointing to bitcoin’s more than 40% year-to-date gain, progress in ether ETFs and cryptography political tides changing in your favor.
“From a long-term investment thesis, bitcoin has rarely been more attractive than it is now.”