Bitcoin slips below $60,000 as token struggles to recover

BITCOIN (BTC-USD) fell below $60,000 per token, extending its bear-market decline.

The cryptocurrency has struggled to establish a sustained recovery and remains more than 50% below its October all-time high.

While some strategists remain cautious about calling a market bottom, heavy selling by long-term holders may signal that a late-cycle capitulation phase is approaching.

"Selling from long-term BTC holders (6+ months) continues to increase, which is a typical sign of late-cycle capitulation," Compass Point analyst Ed Engel wrote in a note on Monday.

Investor sentiment has also been pressured by spot ETF outflows and a shift in capital toward AI-related investments, both of which have weighed on bitcoin's performance this year.

"We think Bitcoin's renewed sell-off reflects a combination of: (i) a hawkish shift in the Fed outlook; (ii) record institutional ETF outflows and thinning liquidity," Deutsche Bank strategist Marion Laboure wrote in a note on Tuesday.

Bitcoin has underperformed broader markets since the March 30 market lows. The token briefly fell to $60,000 in early June, its lowest level since late 2024.

The token is down roughly 28% year to date and about 50% from its all-time high last October.