A circle is broken into 360 degrees because the Babylonians and Sumerians were measuring how much a star moves in the sky relative to the day before. In other words, one degree is the relative change of position from one day to the next (approximately).
Obviously we see the stars moving across the sky over the course of the night, but at 12:00 midnight, say, a star would be located at a given point in the sky. The next night, at 12:00 midnight, the star would have shifted a little in the sky - by almost one degree. In fact, over the course of a year, the star will shift 360 degrees, returning almost exactly to it's location at midnight one year earlier.
All are approximate, since you could not measure star locations precisely unless you could also measure time precisely, and 360 is a much easier number to work with than 365 if you're building your whole numbering system on the tracking of the stars.
A base-60 numbering system reflected the fact that the Babylonians and Sumerians were among the first to use the stars for navigation. The practical use of navigation by the stars drove the invention of their numbering system.
In other words, is was the approximately 360
days in a year that drove the base-60 numbering system vs. the other way around.
The Sumerians invented this system, but the Babylonians are more well known for it, since it was they who passed this on to the Arab world to be spread to other civilizations.