Bitcoin below $60k, headed for second quarterly decline

The world’s largest cryptocurrency last traded 0.4% lower at $59,765.0

Bitcoin traded below the key $60,000 level on Monday, heading for a second consecutive quarterly decline, weighed down by persistent outflows from U.S. spot exchange-traded funds, a hawkish central bank outlook, and lingering geopolitical uncertainty in the Middle East.

The world’s largest cryptocurrency last traded 0.4% lower at $59,765.0 by 05:02 GMT.

Bitcoin is set for a 13% quarterly loss, marking only the third instance of back-to-back quarterly losses since its inception.

It has dropped more than 30% so far this year.

Investor sentiment has been hurt by a sustained exodus from spot bitcoin ETFs.

U.S.-listed bitcoin funds recorded a seventh consecutive week of net outflows, with around $1.8 billion leaving the products in the prior week, according to SoSoValue data.

Total monthly outflows have surpassed $4 billion, reflecting weakening institutional demand amid broader market volatility.

The cryptocurrency has also come under pressure from a stronger dollar and growing expectations that the U.S. central bank may keep monetary policy tighter for longer.

Markets have increasingly priced in the possibility of rate increases this year after recent economic data pointed to resilient inflation and labour-market conditions.

Investors were also monitoring developments in the Middle East after reports that Iran and U.S. had agreed to halt recent hostilities and resume negotiations following a weekend flare-up around the Strait of Hormuz.

While the prospect of renewed diplomacy helped stabilize broader risk sentiment, traders remained cautious given the risk of further disruptions to world energy markets.

Market participants are now looking ahead to this week’s U.S. employment report for further clues on the central bank’s policy path.