Bitcoin drops back to $60,000 early this week | Wilnesh News

Bitcoin It continued to fall to $60,000 on Monday.

The price of the flagship cryptocurrency recently fell by more than 4% to $61,211.00, according to Coin Metrics. Earlier, it fell to $60,666.30, its lowest level in more than a month. It has fallen more than 8% in the past week.

Digital asset investment products saw outflows for the second week in a row, data from CoinShares showed. Last week, global trading volumes in cryptocurrency investment products hit their lowest point since the launch of the U.S. Bitcoin ETF in January.

“We have seen $1.2 billion in outflows from cryptocurrency ETFs over the past two weeks, which all started after the FOMC meeting. We believe that continued pessimism about the number of rate cuts is weighing on sentiment in the cryptocurrency market.” This company focuses on Cryptocurrency asset management firm Research told CNBC. “The Fed has said they need to see further evidence of falling inflation before becoming more dovish, so any macro narrative that emphasizes continued decline in inflation is likely to support prices, and conversely, an inflation date will weigh on prices.”

Eleanor Gaywood, head of strategy at Coincover, said the market tends to feel uneasy ahead of Friday’s release of the personal consumption expenditures index, the Fed’s preferred inflation gauge. Signs of a rate cut in September could ease investor nerves and stabilize Bitcoin’s price, she said.

Additionally, Bitcoin has seen a surge in long liquidations, forcing traders to sell assets at market prices to pay off debt. According to data from CoinGlass, $97.83 million in long Bitcoin liquidations occurred on centralized exchanges in the past 24 hours.

Cryptocurrencies plunge along with Bitcoin. ether fell 4%, while tokens related to smart contract platforms Solana Payment tokens down 3% Ripple Down 1%, meme tokens Dogecoin dropped by nearly 5%.

Stocks Coin library Down nearly 4% micro strategy It fell more than 5% in pre-market trading. Mining stocks fell across the board.

Last week, CryptoQuant said that due to the lack of bullish momentum, Bitcoin may fall back to $60,000 after falling below the key support level of $65,800. The company’s on-chain data shows that traders have been reducing their holdings of Bitcoin since it hit $70,000 in late May, but have not yet started buying again.

This month, Bitcoin is down nearly 10%. It briefly touched the $71,000 level in early June but has been steadily declining since then. It has been hovering in a tight range between $60,000 and $70,000 since reaching an all-time high of $73,797.68 in mid-March.