Bitcoin Breaks $60K: 20-Month Low
Bitcoin fell through the critical $60,000 psychological support in intraday trading, reaching as low as $59,023 — the lowest level since October 2024 and a 20-month low. At press time, BTC had rebounded slightly to around $60,600, with 24-hour losses narrowing to about 3% and a 7-day decline of approximately 9%. This is the third time Bitcoin has broken below $60,000 this year, but unlike previous instances, the current drop occurs amid sustained institutional capital outflows and a sharp shift in macro policy expectations, systematically undermining market confidence.
The Double Squeeze: ETF Outflows and Macro Policy Pivot
U.S. spot Bitcoin ETFs have been the primary driver of this decline. Since mid-May, ETFs have recorded net outflows for six consecutive weeks, with cumulative net outflows of approximately $5.94 billion over 30 days — the largest wave of institutional capital withdrawals since ETFs launched in January 2024. BlackRock's IBIT saw a single-day net outflow of $528 million on May 28, an all-time record. Total assets under management for Bitcoin ETFs have fallen from about $113 billion at the start of the year to approximately $77.5 billion, eroding over 30%. According to The Block data, on June 23, ETFs still recorded a net outflow of about $113.8 million, indicating no material reversal in institutional selling pressure.
Macroeconomic factors are also exerting pressure. U.S. job openings reached 7.62 million in April, far exceeding expectations and hitting a nearly two-year high, directly pushing the 10-year Treasury yield back above 4.45%. Cleveland Fed President Beth Hammack subsequently stated that if inflation remains persistently high, the Fed may need to resume rate hikes. CME FedWatch data shows the probability of a rate hike by year-end has risen to over 50%. The strong bull market in 2025 was built on expectations of Fed rate cuts and liquidity easing; once that expectation reverses, institutional funds tend to rotate into bonds and cash, with Bitcoin's high-risk assets bearing the brunt.
Key Watch Points Ahead
In the near term, market attention will be on upcoming U.S. inflation data and the Fed's next policy signals. If CPI comes in below expectations, it could provide a relief window for Bitcoin. If inflation proves sticky again, further downside pressure will accumulate. Until extreme panic subsides and ETF fund flows show a clear inflection point, Bitcoin's ability to hold the $60,000 defense line may determine the next direction of the bear market.
