New Low: Bitcoin Hits $59,023, Worst Level in 20 Months
Bitcoin pierced the critical $60,000 support level in intraday trading, falling to $59,023 — its lowest point since October 2024, marking a nearly 20-month low. At press time, BTC had recovered slightly to around $60,600, narrowing the 24-hour drop to about 3%, with a seven-day decline of roughly 9%. This marks the third time this year Bitcoin has broken below $60,000, but unlike previous episodes, this selloff occurs amid sustained institutional capital flight and a sharp shift in macroeconomic expectations, systematically undermining market confidence.
Factor 1: Historic ETF Outflow Streak
US spot Bitcoin ETFs are the primary catalyst. Since mid-May, ETFs have recorded net outflows for six consecutive weeks, losing approximately $5.94 billion over 30 days — the largest institutional withdrawal wave since their launch in January 2024. BlackRock's IBIT alone saw a single-day net outflow of $528 million on May 28, a record high. Total ETF assets under management have fallen from roughly $113 billion at the start of the year to about $77.5 billion, evaporating over a third. According to The Block, ETFs still recorded a net outflow of about $113.8 million on June 23, indicating no material reversal in the outflow trend. Whether institutional selling pressure subsides will be a key focus for markets.
The ETF outflows create a vicious cycle: when institutions redeem shares, authorized participants sell the underlying Bitcoin in the secondary market, generating persistent spot selling pressure. CoinShares describes the situation as a "sentiment shock" rather than a structural breakdown of crypto fundamentals.
Factor 2: Macro Reversal — The End of the Rate-Cut Narrative
Macroeconomic forces are adding significant downward pressure. US job openings surged to 7.62 million in April, well above expectations and the highest in nearly two years, pushing the 10-year Treasury yield back above 4.45%. Cleveland Fed President Beth Hammack then warned that if inflation remains elevated, the Fed may need to resume rate hikes. CME FedWatch data now shows the market pricing in a more than 50% probability of a rate hike by year-end.
The strong bull market of 2025 was built on expectations of Fed rate cuts and ample liquidity. With that narrative now reversed and real rates rising, institutional money is rotating into bonds and cash, punishing risk-on assets like Bitcoin. In the near term, all eyes are on the upcoming US inflation data and the Fed's next policy signal. A lower-than-expected CPI could give Bitcoin a breather; another sticky inflation print would add further downside pressure. Until panic sentiment fades and ETF flows show a clear turning point, whether Bitcoin can defend the $60,000 level will likely determine the next leg of this bear market.
