Bitcoin Price Continues Descent to $60,000 Amid Market Jitters and Outflows
Bitcoin Continues Descent to $60,000 as Market Jitters Persist
Bitcoin, the flagship cryptocurrency, continued its downward trend on Monday, falling to $60,666.30, its lowest level in over a month. The price of Bitcoin was last down by more than 4% at $61,211.00, according to Coin Metrics, marking a more than 8% decline in the past week.
Digital asset investment products also saw a second consecutive week of outflows, with crypto investment products experiencing their lowest trading volumes globally since the launch of U.S. bitcoin ETFs in January, according to CoinShares.
James Butterfill, head of research at a crypto-focused asset manager, attributed the outflows to pessimism over the number of rate cuts following the recent FOMC meeting. He highlighted the importance of inflation data in influencing sentiment for crypto prices.
Eleanor Gaywood, head of strategy at Coincover, noted that market jitters ahead of the personal consumption expenditure index, the Fed’s preferred inflation gauge, could impact Bitcoin’s price. Signs of a rate cut in September could potentially ease investor nerves and stabilize the cryptocurrency’s value.
In addition to the decline in Bitcoin’s price, long liquidations surged in the past 24 hours, with $97.83 million in long Bitcoin liquidations occurring across centralized exchanges, according to CoinGlass. The broader cryptocurrency market also experienced a downturn, with Ether, Solana, XRP, and Dogecoin all posting losses.
Despite the recent price fluctuations, investors and analysts remain optimistic about Bitcoin’s long-term prospects. Ryan Rasmussen, an analyst at Bitwise Asset Management, described the current price action as “bullishly choppy” and emphasized the underlying market dynamics supporting crypto assets.
Overall, while Bitcoin has faced volatility in recent weeks, many believe that the cryptocurrency still has the potential to reach new record highs this year. Investors are closely monitoring market developments and inflation data to gauge the future trajectory of Bitcoin and the broader cryptocurrency market.