Bitcoin Near $60K, Set for Rare Second Quarterly Loss

Bitcoin is trading just below $60,000 and is on track to record consecutive quarterly losses, down roughly 12% so far this quarter after a 22% drop in the first quarter. The price hit a 20-month low of $58,115 on June 26 before a modest rebound.

Spot Bitcoin exchange-traded funds recorded $444 million in net redemptions on Friday and $1.79 billion of outflows for the week, one of the largest weekly outflow totals on record. Market participants also point to a firmer U.S. dollar and expectations of continued Federal Reserve tightening as factors pressuring risk assets. At the same time, capital has moved into semiconductor and memory-chip stocks benefiting from stronger demand for artificial intelligence infrastructure.

The decline has been deeper among alternative cryptocurrencies. Ether is down about 25% this quarter and about 47% over the past 12 months. Meme and smaller speculative tokens recorded double-digit weekly losses, with Dogecoin, XRP and HYPE among those falling. Solana has outperformed some peers but remains down about 43% year-to-date.

Sentiment and technical indicators show elevated caution. The crypto-focused Fear & Greed Index stood at 18, a reading classified as Extreme Fear. Historical records show that prior instances when Bitcoin closed two consecutive six-month red candles, in 2018 and 2022, were followed by extended multi-year rallies.

Institutional flows added pressure last week as Ether-focused ETFs logged $274 million in outflows. Analysis of ETF holdings suggests the average investor in a major Bitcoin ETF is roughly 40% below their entry price at current levels. One publicly traded company with large Bitcoin holdings saw its enterprise market value fall below the value of its on‑balance sheet Bitcoin, removing a market premium that had previously supported capital raises.

Executives and major holders reacted publicly. Binance founder Changpeng Zhao attributed the market weakness to a mix of artificial‑intelligence developments, geopolitical tensions and Bitcoin’s four‑year cycle. Coinbase’s chief executive responded to criticism that the company’s consumer app promotes gambling-style trading by saying users retain decision authority and the platform should not aggressively promote such behavior. A prominent investor signaled willingness to add to positions if prices decline further, while tokenization firms prepare for upcoming public listings.

Traders and investors will be watching trading volumes, large ETF flows and incoming macroeconomic and corporate data as the quarter closes and the market absorbs those developments.