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Bitcoin Drops to $60,000 Amid Market Turmoil

Bitcoin Drops to $60,000 Amid Market Turmoil

Bitcoin's value continues to decline, falling to $60,000 as market jitters, inflation concerns, and liquidation spikes impact prices. This downturn marks a significant setback, with Bitcoin's price dropping by over 4% to $61,211.00, according to Coin Metrics. Earlier in the day, it hit $60,666.30, the lowest level in more than a month, resulting in an 8% decrease over the past week.

Decline in Trading Volumes and Market Outflows

Digital asset investment products experienced a second consecutive week of outflows, as reported by CoinShares. Last week, crypto investment products saw their lowest global trading volumes since the launch of U.S. bitcoin ETFs in January. James Butterfill, head of research at a crypto-focused asset manager, highlighted that $1.2 billion in outflows from crypto ETFs have occurred over the past two weeks. This trend began following the Federal Open Market Committee (FOMC) meeting, with continued pessimism regarding the anticipated number of rate cuts affecting sentiment towards cryptocurrencies. The Federal Reserve has indicated the need for further evidence of falling inflation before adopting a more dovish stance, significantly impacting market sentiment.

Inflation Concerns and Market Nervousness

Eleanor Gaywood, head of strategy at Coincover, noted that market jitters are common ahead of the personal consumption expenditure index release, the Fed’s preferred inflation gauge, due on Friday. She suggested that signs of a rate cut in September could calm investor nerves and help stabilize Bitcoin’s price. However, the uncertainty surrounding inflation and potential rate hikes continues to weigh heavily on the market.

Surge in Long Liquidations

Bitcoin also experienced a surge in long liquidations, forcing traders to sell their assets at market price to settle debts. In the past 24 hours alone, $97.83 million in long Bitcoin liquidations occurred across centralized exchanges, according to CoinGlass. This substantial sell-off has added significant downward pressure on Bitcoin’s price, contributing to its recent decline.

Broader Cryptocurrency Market Impact

The decline in Bitcoin's price has mirrored across the broader cryptocurrency market. Ether dropped by 4%, the Solana smart contracts platform token fell by 3%, XRP slipped by 1%, and the meme token Dogecoin declined nearly 5%. This widespread decrease underscores the interconnected nature of the cryptocurrency market, where fluctuations in Bitcoin's price often lead to similar movements in other digital assets.

Decline in Crypto-Related Equities

The equities market also reflected this downturn, with companies tied to cryptocurrency experiencing declines. Coinbase retreated by nearly 4%, and MicroStrategy fell by more than 5% in premarket trading. Mining stocks were lower across the board, further highlighting the widespread impact of Bitcoin's decline on related sectors.

Technical Analysis and Trader Sentiment

Last week, CryptoQuant suggested that Bitcoin could slide back to $60,000 after breaking below the key support level of $65,800 due to a lack of bullish momentum. On-chain data from the company indicates that traders have been reducing their holdings since Bitcoin reached $70,000 in late May and have not yet started buying again. This lack of buying pressure has contributed to the ongoing downward trend.

Monthly Performance Overview

For the month, Bitcoin is down nearly 10%. It briefly reached the $71,000 mark at the beginning of June but has steadily declined since. Bitcoin has been largely 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. This persistent range-bound trading has frustrated both traders and investors, leading to increased volatility and uncertainty in the market.


Bitcoin's recent downturn to $60,000 reflects broader market concerns, including inflation fears, liquidation spikes, and continued outflows from crypto ETFs. With significant outflows from crypto ETFs and increased liquidation activity, the flagship cryptocurrency faces ongoing volatility. Investors and traders will be closely watching upcoming economic indicators and Federal Reserve actions for further direction. Understanding the factors driving these movements is crucial for making informed decisions in this dynamic market.


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