Overview
Bitcoin remained pinned below the $60,000 psychological level on Friday, reflecting continued pressure on risk‑on assets as investors withdrew from spot exchange‑traded funds (ETFs) and broader equity markets.
Bitcoin Price Action
By 01:57 ET (05:27 GMT) Bitcoin had slipped 2.7% to $59,918.5, marking a decline of nearly 7% for the week. The price stayed under the $60k threshold, underscoring heightened market caution.
Spot Bitcoin ETF Outflows
Data from SoSoValue showed spot Bitcoin ETFs experienced a seventh straight week of net outflows, with investors pulling $1.35 billion out of the funds this week. The outflow magnitude increased after a brief two‑week lull, indicating a steady pivot away from crypto‑linked products toward assets perceived to have clearer fundamentals, notably artificial‑intelligence stocks.
Macro Context – U.S. Monetary Environment
The outflows were amplified by persistent concerns over elevated U.S. interest rates. The Federal Reserve delivered a hawkish tone last week, and the Personal Consumption Expenditures (PCE) price index released on Thursday revealed inflation remaining sticky and well above the Fed’s 2% target, potentially prompting further rate hikes. Higher rates are unfavorable for speculative assets such as cryptocurrencies, which offer no direct yields.
Regulatory Update – Binance
Binance, the world’s largest crypto exchange, announced it failed to secure a license in Greece under the European Union’s Markets in Crypto‑Assets (MiCA) framework. The firm said users can still access their assets and that it will pursue authorization in another EU member state. Under MiCA, crypto firms must obtain a national license by the end of June, after which the license can serve as a passport for operating across the bloc.
Altcoin Performance
The broader crypto market also retreated. Ether dropped 6.4% to $1,548.27, approaching a 14‑month low. XRP slipped 0.3%, while both Solana and Cardano fell more than 4% each. Among meme‑coins, Dogecoin declined 3.5% and the $TRUMP token fell 2.9%. Binance’s native BNB token decreased 2% on the same day.
Summary of Market Sentiment
Overall, the combination of sustained ETF outflows, a hawkish U.S. monetary stance, and regulatory setbacks for a major exchange contributed to a risk‑averse environment, keeping Bitcoin and other digital assets below key price thresholds.