In early July, Bitcoin fell to about $57,700, its lowest level since September 2024, leaving the cryptocurrency more than 50% below the record high set last October. It remained under pressure as hawkish comments from Federal Reserve officials strengthened expectations of higher US interest rates, bolstering the dollar and diminishing the appeal of non-yielding assets such as Bitcoin.
Investor sentiment was further undermined by more than $4 billion in net outflows from US-listed spot Bitcoin ETFs in June, the largest monthly withdrawal since their introduction. Additional downward pressure stemmed from renewed concerns over Strategy Inc.’s financing overhaul, which raised the prospect that one of Bitcoin’s largest corporate holders may prioritize strengthening its balance sheet over continued accumulation.
Bitcoin also dropped below its 200-week moving average for the first time in three years, a technical development often viewed as a signal of extended bear markets.
