Bitcoin Breaks Below $60K, Hits 20-Month Low
Bitcoin breached the psychologically critical $60,000 support level during today's trading session, touching as low as $59,023 — the lowest point since October 2024, representing a nearly 20-month low. At press time, BTC had recovered slightly to around $60,600, narrowing the 24-hour loss to approximately 3%, while the seven-day decline stands at about 9%. This marks the third time Bitcoin has fallen below the $60,000 threshold this year. However, unlike the previous two instances, this sell-off occurs against a backdrop of sustained institutional capital withdrawal and a sharp reversal in macro policy expectations, delivering a systemic blow to market confidence.
Spot ETFs Experience Longest Net Outflow Streak Ever
US spot Bitcoin ETFs have become the primary driver of this downturn. Since mid-May, ETFs have recorded net outflows for six consecutive weeks, with cumulative outflows of approximately $5.94 billion over the past 30 days — the largest institutional retreat since the products launched in January 2024. Notably, BlackRock's IBIT saw a record single-day outflow of $528 million on May 28. The total asset under management for Bitcoin ETFs has dropped from roughly $113 billion at the start of the year to about $77.5 billion, a decline of over one-third. According to The Block, ETFs still recorded net outflows of roughly $113.8 million on June 23, indicating that the institutional divestment trend has not materially reversed. The outflows create a self-reinforcing cycle: when institutions redeem shares, authorized participants must sell the corresponding Bitcoin directly on the secondary market, generating persistent spot selling pressure. CoinShares has characterized the situation as a 'sentiment shock' rather than a fundamental breakdown of crypto market structure.
Macro Policy Shift: Rate-Cut Hopes Dwindle, Hiking Risks Rise
Macroeconomic factors are exerting additional pressure on Bitcoin. US job openings surged to 7.62 million in April, far exceeding expectations and reaching the highest level in two years. This directly pushed 10-year Treasury yields back above 4.45%. Cleveland Fed President Beth Hammack subsequently stated that if inflation remains elevated, the Federal Reserve may need to resume rate hikes. CME FedWatch data now shows the market pricing in a greater than 50% probability of a rate hike by the end of the year. The strong bull market of 2025 was built on the liquidity expectation of Fed rate cuts. With that expectation reversed and real interest rates rising, institutional capital is shifting toward low-risk assets such as bonds and cash, leaving Bitcoin — a high-risk asset — most vulnerable. In the near term, all eyes are on upcoming US inflation data and the Fed's next policy signals. A weaker-than-expected CPI reading could provide a temporary reprieve for Bitcoin. However, if inflation proves sticky, downward pressure will continue to build. Until extreme fear subsides and ETF flows show a clear inflection point, whether Bitcoin can hold the $60,000 line may determine the next direction of this bear market.
