Bitcoin briefly dropped below $60,000 this week, touching a low of approximately $59,200, before buying interest pushed the price back to around $60,700. However, looking at the weekly performance, major crypto assets remain in a corrective phase with limited rebound strength.
Major tokens are generally weakening.
According to CoinDesk data, Bitcoin fell 2.9% over the past 24 hours, with its weekly decline expanding to 5.4%. Ethereum dropped to $1,616, down 7.9% for the week; XRP traded at $1.07, down 9.2% for the week; and Solana fell to $68.
Dogecoin and Hyperliquid’s HYPE experienced larger declines, falling 11.9% and 11.7% respectively over the past 7 days. Among major tokens, TRON was one of the few to rise, gaining 1.9% for the week.
ETF outflows and a stronger dollar are putting pressure on
The report noted that this downturn did not recover alongside the rebound in U.S. tech stocks. AI-related trading, which had previously weighed on risk assets, showed signs of recovery. After Micron issued stronger-than-expected sales guidance, its stock surged approximately 15%, Nasdaq 100 futures rose 1.8%, and South Korea’s Kospi index climbed more than 6% at one point.
However, the crypto market did not rebound in tandem. According to Alex Kuptsikevich, Chief Market Analyst at FxPro, Bitcoin’s drop below $60,000 primarily reflects three sources of pressure: continued outflows from U.S. spot Bitcoin ETFs, a more hawkish stance by the Federal Reserve, and the U.S. dollar rising to a seven-month high.
A stronger U.S. dollar typically increases the cost for overseas investors to purchase dollar-denominated assets and reduces the appeal of risk assets. This leaves the crypto market lacking sufficient buying support, even amid falling oil prices and a rebound in tech stocks.
The market is watching inflation data.
FxPro also noted that Bitcoin is currently trading near the 200-week moving average. In the past, when this long-term trend line has been broken, market weakness has persisted for extended periods rather than resulting in brief pullbacks.
Analysts believe that the upcoming U.S. inflation data will be a short-term focal point. If the data comes in stronger than expected, it could further reinforce expectations of a hawkish Fed and a stronger dollar; if the data comes in weaker, it may alleviate current pressure on crypto assets.
From the current trading environment, market focus has shifted from oil prices and geopolitical developments, which previously drove June’s rally, to ETF fund flows and whether spot demand is recovering.