Bitcoin Faces Back-to-Back Quarterly Loss Amid ETF Outflows
Bitcoin is on track for a rare back-to-back quarterly loss, having dropped about 12% this quarter after a 22% decline in the previous quarter. This decline has been driven by significant outflows from spot Bitcoin exchange-traded funds (ETFs), totaling $1.79 billion last week, according to Decrypt.
Current Market Overview
Bitcoin is trading just below $60,000 and experiences a significant downturn of approximately 12% this quarter, following a 22% decline in the first quarter. This unusual performance breaks Bitcoin's historical trend of favorable second-quarter results. The lowest point in this selloff occurred on June 26, 2026, when Bitcoin's price hit a 20-month low of $58,115. The recovery since then has been minimal, displaying only a shallow bounce.
Factors Contributing to Bitcoin's Decline
The primary reasons for the current market crisis include steady outflows from spot Bitcoin ETFs, which saw another $1.79 billion leave the market last week. A hawkish U.S. Federal Reserve, under the leadership of Kevin Warsh, coupled with the strengthening U.S. dollar at a 12-month high, exacerbates the situation. Additionally, there is a noticeable shift in capital towards the semiconductor and memory-chip industries, benefitting from the AI boom.
Altcoins have been hit harder; Ethereum is down about 25% this quarter and 47% year-to-date. Other cryptocurrencies such as Dogecoin, XRP, and HYPE also experienced double-digit losses over the past week. Although Solana has performed somewhat better than most altcoins, it still faces a 43% decline this year.
Potential Implications
This back-to-back quarterly loss raises questions regarding Bitcoin's traditional four-year market cycle, particularly if a negative result persists into red for 2026. The unusual trend would disrupt the common pattern of three bullish quarters followed by one bearish quarter. But some market proponents remain hopeful. Every time Bitcoin has closed two consecutive red six-month candles (last seen in 2018 and 2022), it was followed by a three-year upward trend. Currently, the second red six-month candle in this downtrend is set to close shortly, leading to speculation about a market rebound after the extreme fear indicated by a Fear and Greed index reading of 18.
The market's current sentiment and response to these conditions continue to create vital discussions among investors and analysts regarding future price movements and the sustainability of Bitcoin's historical patterns.
Summary based on original reporting by Tyler Warner at Decrypt, originally published Jun 29, 2026. SolanaWire does not republish source content.
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