Bitcoin traded above $60,000 on Sunday, after briefly dipping below that key level earlier in the weekend, amid continued ETF outflows, a strengthening US dollar, and expectations of tighter monetary policy, factors that continue to weigh on market sentiment.
Bitcoin was trading down 0.25% at $60,273.40 as of 7:37 AM Saudi Arabia time, after briefly dipping below $60,000 earlier over the weekend. The cryptocurrency is on track for its second consecutive quarterly loss, a rare occurrence that has only happened twice before this year.
Institutional demand has weakened in recent sessions. Bitcoin spot ETFs (ETFs) in the US have recorded seven consecutive days of net outflows, with approximately $445 million leaving Bitcoin funds on Friday alone. Total monthly outflows have reached approximately $4.06 billion, bringing the total assets of these ETFs down to around $72.80 billion.
Despite the sell-off, blockchain data indicates that large investors were buying during periods of weakness. Transactions exceeding $100,000 and $1 million saw a significant increase after Bitcoin briefly traded below $60,000, suggesting that whales were accumulating the currency during the sell-off.
Meanwhile, long-term investors began to see losses after weeks of falling prices. Analysts suggested this could eventually ease selling pressure as profitable supply dwindles.
Macroeconomic conditions also remained challenging. Market expectations shifted toward further interest rate hikes by the Federal Reserve under Chairman Kevin Warsh, which would support the US dollar and put pressure on riskier assets, including cryptocurrencies.
The stronger dollar also weighed on gold and silver, as all three assets declined as investors unwound what is known as a currency devaluation deal, which had benefited the scarce assets seen as a hedge against currency weakness.
Grayscale Research said Bitcoin’s next big move could depend on several upcoming catalysts, including future Federal Reserve decisions, progress on the CLARITY Act in the U.S. Senate, and developments regarding Strategy’s balance sheet in the wake of concerns about its leveraged Bitcoin acquisition model.
Despite the recent correction, Grayscale noted that the long-term fundamentals remain sound, citing continued institutional adoption, the expanding use of stablecoins, and the growth of real-world asset tokenization as structural drivers of the digital asset industry.
Investors will also be watching to see if ETF flows stabilize in the coming weeks, as renewed institutional demand could help determine whether Bitcoin can strengthen its rebound above the $60,000 level.
Cryptocurrency prices today: Altcoins mostly decline on Sunday
The broader cryptocurrency markets traded mixed during Sunday's quiet trading session.
Ether fell 0.12% to $1,582.32.
XRP traded steadily at $1.0569, while BNB fell 1.29% to $558.40.
Solana rose by 0.14%, while Cardano fell by 0.73%.
In the realm of meme currencies, Dogecoin declined by 1.84%, while TRUMP fell by 2.73%.
