Key Highlights
Bitcoin touched a low of around $58,200 before recovering to near $59,890; Ethereum fell 3.8% and XRP shed 3.6% over the same 24-hour window.
Asian equity markets dropped sharply Friday morning, with South Korea's Kospi losing over 8% and triggering a circuit breaker, Japan's Nikkei off 4.9%, and Hong Kong's Hang Seng down 2.3%.
U.S. spot bitcoin ETFs saw $696.3 million in net outflows Thursday, their largest single-day outflow since May 27 and a sixth straight day of negative flows.
Bitcoin slid below $59,000 late Thursday in a broad crypto sell-off driven by macro risk-off sentiment. The world's largest cryptocurrency touched a low of around $58,200 before rebounding to roughly $59,890, while Ethereum dropped 3.8% to $1,555 and XRP lost 3.6% to $1.03.
Asian equity markets fell sharply on Friday morning. South Korea's Kospi declined over 8%, triggering a circuit breaker, while Japan's Nikkei 225 dropped 4.9% and Hong Kong's Hang Seng Index slid 2.3%.
Analysts noted that bitcoin is trading in lockstep with equities, coming under pressure as broader risk assets sold off during the Asia session. Traders are watching whether BTC can reclaim $60,000 quickly, with the $54,000-$56,000 zone cited as structural support if resistance forms at that level. Additional focus remains on spot ETF flows and the July 2 U.S. jobless claims report as potential catalysts.
U.S. spot bitcoin ETFs recorded $696.3 million in net outflows on Thursday, their largest daily outflow since May 27, extending a losing streak to six consecutive days.
On the macro front, U.S. PCE inflation rose 4.1% year-on-year in May, with core PCE advancing 3.4%, keeping the possibility of a Federal Reserve rate hike this year alive. Adding to market anxiety, Strategy's STRC perpetual preferred stock dropped as much as 26% below its $100 par value this week, raising questions about payout sustainability and the durability of the company's bitcoin-holding model.
