Bitcoin surpasses $60,000 amid macroeconomic factors.
On the evening of July 1, Bitcoin rebounded from a 21-month low of around $57,700, climbing above $60,000. This movement followed statements by Federal Reserve Chairman Kevin Warsh regarding persistently high inflation in the U.S.
Simultaneously, Ethereum returned to the $1600 mark.
Earlier, the Fed Chairman declined to hint at a decision on interest rates at the upcoming meeting in late July, but noted a weak economic backdrop.
“We are all engaged in ensuring price stability, which may not be our only activity, but if there is one common theme I’ve heard over the past couple of days, it’s openness to AI issues, openness to productivity issues, but we’ve all looked around and seen that prices are too high,” Warsh stated.
According to the FedWatch Tool, investors estimate a 70.6% probability of maintaining the current rate. Meanwhile, 29.4% expect an increase.
By the September Fed meeting, nearly 50% expect monetary policy tightening.
Other factors continue to restrain the growth of the crypto market. The yield on five-year U.S. government bonds rose to 4.22%, gold fell by 12% over two months, and the dollar index (DXY) approached a yearly high.
Additional pressure on Bitcoin’s price comes from outflows from spot Bitcoin ETFs. According to SoSoValue, net outflows from funds in June amounted to $4.5 billion, the highest since launch.
The daily series of withdrawals has continued for 10 consecutive days.
Analyst known as Darkfost noted that retail inflows (<1 BTC) on crypto exchanges are at a record low. The average daily figure on Binance fell from 2690 BTC in 2021 to the current 329 BTC.
The expert linked the decline to investors shifting to other instruments, such as exchange-traded funds. In the long term, this could strengthen Bitcoin’s position by reducing direct selling pressure.
CryptoQuant analysts reported that Bitcoin is approaching a bottom, as the percentage of losses on UTXO reached 60%.
“The upward trend in this indicator means that the share of investors in a loss position is increasing. Investor losses are growing to a maximum level. This signals that the market is very close to a bottom,” the company added.
In June, Bitcoin fell by approximately 20%, marking its worst monthly performance in four years.
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