Bitcoin drops below $60K again on Tuesday. The asset faced downside pressure as the US dollar hit its highest levels against the Japanese yen since 1986.
According to TradingView data, BTC fell toward $58,000 around the Wall Street open as volatility increased into the US session.
Why Bitcoin drops below $60K amid dollar strength
Commentators saw the tussle between bulls and bears continuing on short time frames. “Open Interest pumping, noticed some large longs entering on this dip, it’s about to get spicy,” commentator Exitpump wrote on X.
Trader Killa eyed a repeat of weekly price patterns, in which Mondays formed the swing low or high of the following week. “BTC Keeps consolidating in this price range. Marginally higher lows and equal highs,” trader Daan Crypto Trades continued. “Look out for whichever direction breaks first, I think a quick move should follow after that seeing how compressed this is becoming.”
Consequently, Bitcoin reinforced its divergence from US stocks with total Q2 losses nearing 20%. By contrast, the S&P 500 is up 14% over the quarter, marking its best performance since 2020. The Nasdaq 100 is up +25%, on track for its strongest quarter in 5 years.
US dollar hits 40-year high against yen
In a potential headwind for crypto, the US dollar hit new multidecade highs against the Japanese yen. Specifically, USD/JPY reached 162.50 on the day, its highest since the mid‑1980s.
“Whether it’s Japan, India, South Korea or MSTR, it’s the same problem,” analyst George Gammon summarized. “You’ve got dollar liabilities and not enough dollars. So you sell assets to get dollars putting downward pressure on the asset. Yen, Rupees, Won, or Bitcoin.”
Bitcoin hodlers “appear to be cutting losses”
In new research, CryptoQuant warned of a fresh round of Bitcoin investor “capitulation.” At sub‑$70,000 levels, contributor Crypto Sunmoon warned that those who bought BTC around all‑time highs were now selling at a loss.
“Since the break below $70K, exchange inflows have risen sharply, with the majority of this volume consisting of coins held for roughly six to twelve months,” they wrote. “This pattern is consistent with capitulation among cycle-top buyers, as holders appear to be cutting losses rather than continuing to hold through the drawdown.”
CryptoQuant data showed onchain movements increasingly involving coins that last moved around all‑time highs, along with increasing inflows to exchanges.
“For some, this will be a painful stretch. That said, capitulation events of this kind among cycle-top investors have historically coincided with long-term bottom formation, a pattern observed in both the 2018 and 2022 cycles,” Crypto Sunmoon added.
