A photo illustration depicting the cryptocurrency bitcoin.
Jakub Porzycki | NurPhoto via Getty Images
Bitcoin continued its descent to $60,000 on Monday.
The price of the flagship cryptocurrency was last down by more than 4% at $61,211.00, according to Coin Metrics. Earlier, it fell to $60,666.30, its lowest level in more than a month. It’s down more than 8% in the past week.
Digital asset investment products notched a second consecutive week of outflows, totaling $584 million, according to CoinShares. James Butterfill, head of research at the crypto-focused asset manager, said that’s likely due to investor pessimism around Federal Reserve interest rate cuts this year. Additionally, last week crypto investment products saw their lowest trading volumes globally since the U.S. bitcoin ETFs launched in January.
Eleanor Gaywood, head of strategy at Coincover, said there are often market jitters ahead of the personal consumption expenditure index, the Fed’s preferred inflation gauge, which is due this Friday. She said signs of a rate cut in September could ease investor nerves and steady bitcoin’s price.
Bitcoin has been steadily descending since the beginning of June
Additionally, bitcoin saw a jump in long liquidations, which forces traders to sell their assets at market price to settle their debts. In the past 24 hours, $97.83 million in long bitcoin liquidations have occurred across centralized exchanges, according to CoinGlass.
Cryptocurrencies broadly tumbled with bitcoin. Ether lost 4%, while the token tied to smart contracts platform Solana fell 3%, payments token XRP slipped 1% and meme token dogecoin dropped nearly 5%.
In equities Coinbase retreated by nearly 4% and MicroStrategy declined more than 5% in premarket trading. Miners were lower across the board.
Last week, CryptoQuant suggested bitcoin could slide back to $60,000, after breaking below key support of $65,800, due to a lack of bullish momentum. The company’s on-chain data shows traders have been reducing their holdings since bitcoin touched $70,000 in late May and have yet to start buying again.
For the month, bitcoin is down nearly 10%. At the start of June it briefly touched the $71,000 level but has been on a steady decline since. It has been largely stuck in a narrow range between $60,000 and $70,000 since the middle of March, when it reached its all-time high of $73,797.68.
Investors and analysts still expect the cryptocurrency to notch another record this year. Ryan Rasmussen, an analyst at Bitwise Asset Management, called the price action “bullishly choppy.”
“There’s a market-changing tailwind behind crypto that isn’t reflected in the choppy price action on a week-to-week basis,” he said, pointing out bitcoin’s 43% year-to-date gain, progress on ether ETFs and crypto’s political tides shifting in its favor.
“From a long-term investment thesis, bitcoin has rarely been more attractive than it is right now.”