Bitcoin staged a strong recovery during Monday's Asian trading session, climbing back above $63,000 after briefly falling below the $60,000 threshold last Friday, providing some relief to market sentiment.
According to data from CoinMarketCap, as of the morning of June 8, Bitcoin was trading in the range of approximately $63,000 to $63,200, representing a 24-hour gain of about 4.7%. It reached a recent high in dollar terms during the session before pulling back slightly. During last Friday's New York trading session, Bitcoin had plunged as much as 7% to $59,101, marking its first dip below the $60,000 level since October 2024, a point widely considered a key support level following the previous election.
The rebound was primarily driven by a combination of technical buying and positive signals. Analysts noted that the market had become oversold following a series of sharp declines, prompting some investors to buy on the dip. Simultaneously, a post from the executive chairman of Strategy Inc., the world's largest corporate holder of Bitcoin, on social media showing a chart of the company's holdings with the caption "A good time to add more orange dots" was widely interpreted by the market as a signal that the company might be preparing to announce a new round of purchases.
However, the market remains cautious about the sustainability of the rebound. Data indicates that the 11 US-listed spot Bitcoin ETFs have recorded net outflows for 13 consecutive trading days, with cumulative withdrawals of approximately $4.4 billion. Last week alone saw net outflows of $1.72 billion, the largest weekly redemption in over a year. This persistent exit of institutional funds contrasts sharply with the situation in February when Bitcoin reached $60,000, as outflows actually slowed down as prices declined at that time.
Furthermore, geopolitical tensions in the Middle East continue to pressure risk assets. Bitcoin gave back some of its earlier gains on Monday morning following news of retaliatory strikes. Market sentiment indicators also reflect high investor caution, with the Crypto Fear & Greed Index registering a reading of 15 for the day, placing it firmly in the "Extreme Fear" zone.
At the time of writing, Bitcoin was trading around $63,150, while Ethereum was up more than 3% to near $1,690. The market is closely watching an SEC filing expected from Strategy Inc. on Monday for confirmation on whether the company has indeed made new purchases recently.