Bitcoin remained under the key $60,000 threshold on Monday, setting the cryptocurrency up for its second straight quarterly decline as selling from U.S. spot exchange-traded funds, a firmer dollar and a hawkish Federal Reserve outlook weighed on sentiment.
The world's largest cryptocurrency last changed hands 0.4% lower at $59,765.0 by 01:02 ET (05:02 GMT).
Bitcoin is on track for a roughly 13% drop this quarter, which would be only the third time it has recorded back-to-back quarterly losses since inception. Year-to-date the token has retreated by more than 30%.
ETF outflows and monetary policy expectations
Investor interest in spot bitcoin funds has cooled, with U.S.-listed bitcoin ETFs logging a seventh consecutive week of net outflows. About $1.8 billion left those products in the prior week, according to SoSoValue data. Cumulative monthly outflows have now topped $4 billion, signaling weakening institutional demand amid broader market volatility.
Compounding selling pressure, the cryptocurrency has been affected by a stronger U.S. dollar and shifting expectations around Fed policy. Markets have increasingly priced in the chance of further rate increases this year after recent economic data pointed to persistent inflation and resilient labor-market conditions, contributing to a more hawkish outlook for monetary policy.
Geopolitics and risk sentiment
Investors were also watching developments in the Middle East after reports that the U.S. and Iran 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 calm broader risk appetite, traders remained cautious given the possibility of further disruptions to global energy markets.
Market participants are now focused on this week's U.S. employment report for additional clues on the Federal Reserve's likely policy path.
Altcoins mostly soften
Most major alternative cryptocurrencies slipped on Monday, extending weekend losses. Ethereum, the second-largest crypto by market value, ticked down 0.2% to $1,564.92. XRP fell about 1% to $1.037. Cardano declined 1% while Solana bucked the broader trend and rose 1.2%. Among meme tokens, Dogecoin slipped 2.2%.
Traders and investors continue to weigh the combined impact of ETF flows, macroeconomic signals and geopolitical developments as they position ahead of key economic data this week.