Bitcoin headed for quarterly loss amid ETF outflows

Investor sentiment has been hurt by a sustained exodus from spot bitcoin ETFs

Bitcoin ticked higher on Monday as risk sentiment for assets such as equities and cryptocurrencies were boosted by a rebound in technology stocks.

Still, the cryptocurrency was headed for a second straight quarterly decline, weighed down by persistent outflows from U.S. spot exchange-traded funds, a hawkish central bank outlook, and lingering geopolitical uncertainty in the Middle East.

Bitcoin was last up 1.5% to $60,303.8 by 21:29 GMT. The crypto was set for a 13% quarterly loss, marking only the third instance of back-to-back quarterly losses since its inception. It has dropped more than 30% so far this year.

Investor sentiment has been hurt by a sustained exodus from spot bitcoin ETFs.

U.S.-listed bitcoin funds recorded a seventh consecutive week of net outflows, with around $1.8 billion leaving the products in the prior week, according to SoSoValue data.

Total monthly outflows have surpassed $4 billion, reflecting weakening institutional demand amid broader market volatility.

The cryptocurrency has also come under pressure from a stronger dollar and growing expectations that the U.S. central bank may keep monetary policy tighter for longer.

Markets have increasingly priced in the possibility of rate increases this year after recent economic data pointed to resilient inflation and labour-market conditions.

Investors were also monitoring developments in the Middle East after Iran and U.S. exchanged strikes on Friday and over the weekend, in what was the biggest test of diplomacy between the warring sides since an interim memorandum of understanding (MoU) was inked on June 17.

Strategy’s enterprise value has slid below the value of its bitcoin holdings for the first time, a threshold that analysts and investors have been watching closely as a potential test of confidence in the Michael Saylor-founded company’s cryptocurrency strategy.

The company’s so-called mNAV ratio — which measures enterprise value relative to its bitcoin holdings — stood at 0.99 as of last close, according to Strategy’s website. The metric has been in focus since CEO Phong Le said late last year that the company might consider selling Bitcoin if the ratio dropped below 1.