Key facts
- Bitcoin fell below $60,000, trading around $59,940.
- Bitcoin is set to end the second quarter with an approximate 12% loss.
- This follows a 22% decline in the first quarter, marking two consecutive losing quarters.
- Ether is down about 25% in the second quarter.
- Major altcoins like Dogecoin and XRP have also posted significant weekly losses.
- Factors contributing to the decline include outflows from U.S. spot Bitcoin ETFs, a hawkish Federal Reserve, and a strong U.S. dollar.
Bitcoin has fallen below the $60,000 mark, signaling a challenging first half of the year for the cryptocurrency. The digital asset is on track to record its second consecutive quarterly loss, with an estimated 12% decline in the second quarter, following a significant 22% drop in the first three months of the year. This marks a rare occurrence in Bitcoin's history, as the second quarter has historically been a strong period for the asset.
Major altcoins have experienced even steeper declines. Ether, the second-largest cryptocurrency, is down approximately 25% this quarter. Other tokens such as Dogecoin, HYPE, and XRP have also posted double-digit weekly losses, while Solana and Tron have shown relative resilience.
The downturn is attributed to several factors, including consistent outflows from U.S. spot Bitcoin exchange-traded funds (ETFs), a hawkish stance from the Federal Reserve under new Chair Kevin Warsh, and a strengthening U.S. dollar, which has reached a seven-month high. The broader market sentiment has also been influenced by a selloff in tech stocks earlier in the week, with capital flowing into semiconductor and memory-chip stocks amid the ongoing artificial intelligence boom.
Traders are now closely monitoring whether the current weakness will persist into the third quarter, with a focus on ETF flows and overall demand for cryptocurrencies.