Bitcoin has dipped below the $60,000 mark for the first time this year, currently trading at $59,909. This represents a 6% decline in just one day and a staggering 18.5% drop over the past week. Other cryptocurrencies are also feeling the pressure, with Ethereum down 23% this week to approximately $1,555, and Solana experiencing a 22% decrease to $63.75.
Since hitting an all-time high of $126,080 in October 2023, Bitcoin has now lost more than 52% of its value. Contributing factors to this decline include increased outflows from ETFs and the first Bitcoin sale by Strategy since 2022. However, the latest price downturn aligns with strong U.S. job reports, which have heightened expectations for interest rate hikes, alongside concerns about security vulnerabilities in Zcash, a privacy-focused cryptocurrency.
In May, U.S. employers added 172,000 jobs, nearly twice the expected number, prompting traders to anticipate potential rate increases by year-end, as suggested by CME's FedWatch tool. Nicolai Søndergaard, a research analyst at Nansen, noted that this robust job data undermines the narrative for rate cuts, stating, "Bitcoin, already down 15% and burdened by uncleared leveraged longs, lacks a macro catalyst for recovery."
