Bitcoin fell below the $60,000 threshold on Tuesday, recording its steepest monthly performance loss since mid-2022. The largest crypto asset traded around $58,628 on the day; This level indicated a 2.9 percent decrease on a daily basis. Thus, Bitcoin headed for consecutive quarterly losses for the first time since 2022.
The loss has deepened since the beginning of the year
Bitcoin has lost 33 percent of its value since the beginning of the year. In the same period, the S&P 500 index increased by over 9 percent. From the all-time peak in October, the retreat reached approximately 52 percent.
Compulsory liquidations and the weakening of risk appetite came to the fore behind the selling pressure. The US Federal Reserve’s more hawkish stance after its June meeting strengthened the possibility of an additional interest rate increase before the end of the year. While the high interest rate environment reduced the attractiveness of assets that do not produce regular income in portfolios, the geopolitical tension between the USA and Iran caused investors to act more cautiously.
ETF outflows move into eighth week
Net outflows in spot Bitcoin ETFs traded in the US reached their eighth week. According to SoSoValue data, $231.1 million was withdrawn on Monday alone. During June, there was a total outflow of over $4 billion from 13 Bitcoin ETFs listed in the US. This was the largest monthly release since the products launched in January 2024.
Cumulative ETF outflows since late April have approached nearly $6.7 billion. Uncertainty around the CLARITY Act, which aims to establish a regulatory framework for the crypto market in the USA, was cited as one of the factors that increased investor hesitation.
Mini dictionary: CLARITY Act is known as the bill that aims to clarify which institution will control digital assets and within what framework they will be classified in the USA. Failure to advance the bill could make the regulatory outlook more uncertain, especially on the institutional investor side.
MicroStrategy, which holds one of the largest Bitcoin reserves on corporate balance sheets, announced on Monday that it had provided more than $1 billion in funding. The company stated that this resource will be used to strengthen cash reserves, not for new Bitcoin purchases.
While Compass Point analyst Ed Engel said that this decision alleviated concerns about the company’s financial resilience, he emphasized that this cycle differed from previous periods and that no major collapse due to excessive leverage or irregular activities has been seen so far.
Historical indicators are on the agenda again
Crypto analyst Ali Charts pointed out a rare crossover in on-chain data. According to the data shared by the analyst, the amount of Bitcoin held below its cost increased to 10.45 million BTC. The supply in profit remained at 9.60 million BTC. Thus, for the first time in this cycle, the supply of losses exceeded the supply of profits.
Ali Charts noted that this crossover has only appeared before at major cycle bottoms in 2011, 2014, 2018 and 2020, with previous examples followed by strong bull periods.
Market analyst Barchart noted that Bitcoin closed below its 200-week moving average for the first time since 2023. Barchart argued that this technical level has historically presented an accumulation opportunity. However, there is no full consensus on the near-term bottom in the market.
Finality Capital Partners manager David Grider evaluated that the bottom level may not occur before the autumn. Grider said that the range of 40 thousand to 45 thousand dollars could be considered a reasonable expectation.
