Bitcoin Briefly Falls Below $60,000 as ETF Outflows, Strong Dollar Stoke Risk of Deeper Slump

Bitcoin briefly fell below $60,000, with outflows from U.S. spot exchange-traded funds and a stronger dollar fueling concern that the downturn could deepen into a prolonged bear market.

CoinDesk reported on June 25 that Bitcoin dropped as low as $59,200 before paring losses to trade around $60,700. The token was down 2.9% over the past 24 hours and 5.4% for the week.

Major altcoins also weakened. Ether fell to $1,616, bringing its weekly decline to 7.9%. XRP traded at $1.07, down 9.2%, while Solana slid to $68. Dogecoin and Hyperliquid posted the biggest losses among major tokens, falling 11.9% and 11.7%, respectively.

U.S. artificial intelligence-related stocks, by contrast, rebounded. Memory-chip maker Micron gave earnings guidance that topped market expectations, sending its shares up about 15%, while Nasdaq 100 futures rose 1.8%. Oil prices also fell below $73 a barrel after crude transport through the Strait of Hormuz resumed.

Alex Kuptsikevich, chief market analyst at FxPro, said Bitcoin's decline reflected a combination of outflows from U.S. spot ETFs, the Federal Reserve's hawkish stance and a stronger dollar, which has climbed to its highest level in seven months.

He also pointed to Bitcoin's position near its 200-week moving average. In 2015, 2018 and 2022, the cryptocurrency fell to that support level and then remained in a bear market for months, making it hard to dismiss the possibility of another extended slump, or a crypto winter, rather than a short-term rebound.

The $61,800 to $62,000 range is the key near-term resistance zone, Kuptsikevich said. If Bitcoin fails to regain that level, it could fall as low as $55,000.

For now, investors should focus on risk management instead of trying to predict the market's direction, he added. The next key variable will be upcoming U.S. personal consumption expenditures inflation data.