Bitcoin is increasing downside pressure ahead of the end of the quarter as it slips toward the $58,000 level.

Cointelegraph reported on June 30 that the dollar rose to its highest level against the yen since 1986, increasing pressure on the cryptocurrency market. On-chain data also showed more stop-loss selling by buyers near this year’s highs.

Around the U.S. stock market open, bitcoin fell toward $58,000. TradingView data showed volatility increased as U.S. trading began, and short-term price action indicated selling was in control. With $60,000 losing its role as support, the market is seen locked in a tug-of-war between buyers and sellers in the short term.

Short-term traders also focused on an expansion in leveraged positions. Analyst Exitpump said large long positions newly entered during this down move. "Open interest is increasing, and you can see large buy positions coming in on this drop," he said. That means funds seeking a short-term rebound are flowing in, while the potential for greater volatility has also increased.

Other market participants also saw the range-bound move continuing. Daan Crypto Trades pointed out that bitcoin continues to move sideways around current levels. "Lows are getting higher, but highs remain at the same level as before," he said. That indicates the market is moving within a narrow range without settling on a direction.

Over the full quarter, bitcoin moved in a different direction from the U.S. stock market. Bitcoin’s second-quarter losses neared 20 percent, while the S&P 500 rose 14 percent over the same period. Research firm The Kobeissi Letter mentioned that this could be the strongest quarterly performance since 2020 and the second-largest quarterly gain since the recovery period after the 2008 financial crisis. It was also assessed that U.S. stocks are providing momentum as the global stock rally accelerates.

Foreign exchange market moves have also emerged as a burden on cryptocurrencies. USD/JPY rose to 162.50, marking its highest level since the mid-1980s. As yen weakness deepened and the possibility of Japanese government market intervention was also being discussed, analyst and cryptocurrency YouTuber George Gammon said, "Whether it's Japan, India, Korea or MSTR, the problem is the same." He pointed to dollar strength and liquidity pressure affecting multiple markets at the same time.

On-chain data showed signs that loss-taking sales are expanding among investors who bought bitcoin near the top. CryptoQuant analyst Crypto Sunmoon said exchange inflows surged after bitcoin fell below $70,000, and a significant portion consisted of holdings kept for about 6 to 12 months. Those holdings are likely to have been accumulated near the cycle peak.

Crypto Sunmoon also said, "After bitcoin broke below $70,000, exchange inflows rose sharply, and most are coins held for about 6 to 12 months," explaining that buyers at the highs are selling while accepting losses. On-chain data also showed that a significant portion of recently moved coins last moved near the all-time high, while exchange inflows are also increasing.

Some analysis says such capitulation phases do not always mean only further sharp declines. Crypto Sunmoon said, "Such capitulation by cycle-peak buyers overlapped with the formation of long-term bottoms in 2018 and 2022." The market is currently facing the overlap of dollar strength, quarter-end volatility and rising loss-taking sales. That has made it a near-term focus whether bitcoin recovers the $60,000 level or undergoes further adjustment below $58,000.

$BTC Open Interest pumping, noticed some large longs entering on this dip, it's about to get spicy. pic.twitter.com/sudQbqboP6