Bitcoin continued its decline to the $60,000 price level on Monday. The price of this major cryptocurrency was last down more than 4% at $61,211.00, based on Coin Metrics data. 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 posted two consecutive weeks of outflows, according to CoinShares. In the past week, crypto investment products saw their lowest trading volume globally since the launch of the US bitcoin ETF in January.
“We have now seen $1.2 billion in outflows from crypto ETFs in the past two weeks which all started after the FOMC meeting. Our belief is that continued pessimism regarding the number of rate cuts is impacting sentiment for crypto,” said James Butterfill, head of research at the asset manager. "The Fed has indicated they need to see further evidence that inflation is falling before they become more dovish, so any macro data that highlights inflation continuing to fall will likely support prices, and conversely, inflation data will put pressure on prices."
Eleanor Gaywood, chief strategist at Coincover, said there was market concern ahead of the personal consumption expenditure index, the Fed's preferred measure of inflation, which will be released this Friday. He said signs of a rate cut in September could ease investor concerns and stabilize bitcoin prices.
Bitcoin has been steadily declining since the beginning of June. Additionally, bitcoin saw a spike in long liquidity, which forced traders to sell their assets at market prices to settle their debts. In the past 24 hours, $97.83 million in bitcoin long liquidity has occurred on centralized exchanges, according to CoinGlass.
Cryptocurrencies are generally declining along with bitcoin. Ether fell 4%, while tokens tied to smart contract platform Solana fell 3%, payment token XRP dropped 1% and meme token dogecoin fell nearly 5%.
In equities, Coinbase declined nearly 4% and MicroStrategy dropped more than 5% in pre-market trading. Miners are also in decline.