Cryptocurrencies fell broadly in trading on Sunday, with Bitcoin slipping below the $60,000 level and heading toward a quarterly loss as outflows from Bitcoin exchange-traded funds (ETFs) continued.
Bitcoin dropped 1.96% to $59,125, Ethereum fell 2.79% to $1,576, Solana declined 3.28% to $73.32, and XRP slid 2.89% to $1.04.
Bitcoin is on track to post a loss of more than 10% in the second quarter, and is down roughly 30% from the start of the year to date.
Cryptocurrencies have faced mounting pressure in recent weeks amid persistent caution among investors, as appetite for high-risk assets has waned due to uncertainty surrounding the global monetary policy outlook.
Market participants are watching for any new signals on US interest rates, as a prolonged period of elevated rates reduces the appeal of non-yielding assets, chief among them cryptocurrencies.
The market faced additional pressure from continued outflows from Bitcoin ETFs, reflecting diminished institutional investor appetite for the sector at present. These outflows increase supply in the market, weighing on prices and amplifying volatility.
Investors are monitoring developments in the US economy — particularly inflation and labour market data — as key factors that could determine the Federal Reserve's direction at upcoming meetings. Market participants fear that a strong economy could delay interest rate cuts, which would weigh negatively on digital assets.
Analysts say the cryptocurrency market is still undergoing a reassessment phase following the strong gains it recorded in earlier periods, as investors move to take profits and reduce high-risk positions.