TLDR
- Bitcoin dropped beneath the $60,000 level and faces a 13% decline for the quarter, marking consecutive quarterly losses
- Crypto liquidations exceeded $180 million within a single day, with long positions bearing most losses
- Spot Bitcoin ETFs in the United States experienced their seventh consecutive week of withdrawals, surpassing $4 billion in net monthly outflows
- Escalating tensions between the US and Iran in the Strait of Hormuz spooked investors, though ceasefire reports lifted futures
- Major indices suffered last week with the S&P 500 declining nearly 2% and the Nasdaq tumbling 4.6%, while Nvidia and Alphabet both plummeted over 8%
Bitcoin faces mounting pressure to maintain support levels as a combination of geopolitical instability, sustained ETF withdrawals, and a restrictive Federal Reserve policy stance drive prices downward entering the new trading week.
Bitcoin Poised for Consecutive Quarterly Decline
Bitcoin changed hands below the $60,000 threshold Monday morning, shedding approximately 0.4% during the session. The cryptocurrency mounted an attempt to reclaim $60,000 during weekend trading but encountered aggressive resistance from sellers.
The leading digital asset by market capitalization has plummeted more than 30% year-to-date. Current trajectory points toward a 13% quarterly decline, representing just the third occurrence in Bitcoin’s entire history of consecutive quarterly losses.
Spot Bitcoin exchange-traded funds in the United States registered their seventh consecutive week of negative flows. Approximately $1.8 billion exited these investment vehicles during the previous week alone. Cumulative monthly withdrawals have now surpassed the $4 billion threshold.
Institutional appetite is evidently diminishing. An appreciating US dollar combined with heightened expectations that the Federal Reserve will maintain elevated interest rates for an extended period are compounding the downward pressure.
Market participants have begun pricing in potential rate increases following inflation metrics and employment figures that exceeded forecasts. Attention now turns to Thursday’s employment report, which has been rescheduled ahead of the Independence Day holiday.
Geopolitical Turbulence Pressures Risk-On Markets
Hostilities between Washington and Tehran intensified during the weekend following US allegations that Iran conducted strikes in the vicinity of the Strait of Hormuz. President Trump issued warnings of additional military responses via Truth Social.
A representative from the Trump administration subsequently indicated that both nations would “stand down for now,” permitting unrestricted vessel passage. This development provided support to equity futures during Monday’s early trading.
Contracts linked to the S&P 500 advanced 0.5%, while Nasdaq 100 futures appreciated 0.6%, and Dow futures gained 0.3%. Oil prices also strengthened, with Brent crude adding 0.8% to reach $72 per barrel and West Texas Intermediate climbing 1.1% to $70.
The previous week delivered substantial market losses. The S&P 500 retreated nearly 2% while the Nasdaq surrendered 4.6%. Nvidia and Alphabet each declined more than 8%. Meta, Apple, and Amazon all registered losses exceeding 4%. SpaceX shares collapsed 17%.
The Dow Jones Industrial Average demonstrated relative resilience, advancing 0.6% across the week. Merck surged 13% while Johnson & Johnson climbed 11.5%, propelled by strength in the healthcare sector.
Cryptocurrency Market Sentiment Plunges to Extreme Fear
The Crypto Fear & Greed Index registered “Extreme Fear” territory on Monday. The aggregate cryptocurrency market capitalization contracted 3.38% over 24 hours to reach $2.02 trillion.
Liquidations across the market exceeded $180 million during the past day, predominantly affecting leveraged long positions. Ethereum declined 0.2% to approximately $1,564. Analyst Ali Martinez cautioned that continued whale distribution could send Ethereum toward $1,237 or potentially $1,089.
Analyst Michaël van de Poppe observed that markets maintaining stability despite prevailing fear constitutes “a pretty interesting signal.” He suggested that a recovery above $61,000 could establish $65,000 as the subsequent target.
Solana emerged as one of few gainers, advancing roughly 1.2%. Dogecoin retreated 2.2%.
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