Bitcoin slid beneath the $60,000 threshold on Tuesday, recording its sharpest monthly performance decline since mid-2022. The world’s largest cryptocurrency traded around $58,628 during the day, a drop of 2.9% compared to the previous day. This downturn signals Bitcoin’s first run of consecutive quarterly losses since 2022.
Losses deepen since the start of the year
Since January, Bitcoin has shed 33% of its value, while the S&P 500 saw gains exceeding 9% over the same period. From its all-time high in October, Bitcoin’s pullback has now reached approximately 52%.
Analysts point to mandatory liquidations and waning risk appetite as key drivers behind the selling pressure. After the Federal Reserve’s June meeting, the US central bank adopted a more hawkish stance, raising the likelihood of additional rate hikes before year-end. Higher interest rates have reduced the appeal of non-yielding assets in portfolios, while escalating geopolitical tensions between the US and Iran have pushed investors toward caution.
ETF outflows extend into eighth week
Net outflows from US-listed spot Bitcoin ETFs have continued for an eighth consecutive week. According to SoSoValue data, Monday alone saw investors pull $231.1 million from these funds. Over June, the 13 Bitcoin ETFs traded in the US registered total outflows surpassing $4 billion, marking the largest monthly exit since these products launched in January 2024.
Since the end of April, cumulative ETF outflows have approached $6.7 billion. Uncertainty surrounding the CLARITY Act—a proposed framework to regulate the US crypto market—was highlighted as a factor compounding investor hesitation.
Mini glossary: The CLARITY Act is a US legislative proposal aimed at clarifying which agency will regulate digital assets and under what framework. The bill’s lack of progress has heightened regulatory uncertainty, especially for institutional investors.
MicroStrategy, which holds one of the largest corporate Bitcoin reserves, announced Monday it had secured over $1 billion in funding. However, the company specified that these funds are meant to bolster its cash reserves—not for additional Bitcoin purchases.
Compass Point analyst Ed Engel noted that this move helps ease concerns over MicroStrategy’s financial resilience, distinguishing the current cycle from previous periods and underlining the absence of major collapses caused by excessive leverage or misconduct so far.
Historic indicators return to the spotlight
Crypto analyst Ali Charts highlighted a rare crossover in on-chain data. According to his analysis, the volume of Bitcoin held at a loss has risen to 10.45 million BTC, surpassing the 9.60 million BTC being held at a profit. This marks the first time in the current cycle that coins held at a loss outnumber those held at a gain.
Ali Charts pointed out that this crossover previously emerged only at major market cycle lows in 2011, 2014, 2018, and 2020, after which strong bull runs followed.
Market analyst Barchart reported that Bitcoin closed below its 200-week moving average for the first time since 2023, a technical milestone traditionally seen as a potential accumulation opportunity. Nonetheless, there is no clear consensus on whether a short-term market bottom has been reached.
David Grider, a director at Finality Capital Partners, cautioned that the bottom may not arrive before autumn. He suggested a plausible target range for a bottom would be between $40,000 and $45,000.
