Bitcoin outflows continue as price slips below key level

Bitcoin slips below $60,000 

“It is never a good idea to fixate too strongly on specific levels, but bitcoin managed to close below $60,000 twice over the past week, something that has eluded the bears for months. While tech stocks saw some volatility last week, the losses there paled in comparison with the ongoing rout in cryptocurrencies which shows no sign of ending. Despite bitcoin touching its lowest level since October 2024, it doesn’t look like sentiment has really bottomed out yet – there has been a notable absence of ‘is bitcoin dead’ articles that usually manage to highlight the end of the slump.”

What we’re watching – Payrolls and flows

Markets have spent the past few weeks reacting to the surprise hawkishness of the new Fed chair, a man many thought would simply echo Trump’s call for lower rates. Instead we find that rate hikes are back in vogue, even if the slump in oil prices has taken the pressure off. This has trashed gold and silver, but bitcoin hasn’t escaped unscathed. This week’s payrolls might provide further hints on whether the Fed can ease back on the rate hike rhetoric. Meanwhile, outflows from bitcoin and gold funds have continued apace, matched by the rush into semiconductor stocks. This makes sense given the outperformance of the latter, but as last week shows, such enthusiasm can easily tip into reverse when worries appear, and then some unloved areas might finally receive some attention.