Bitcoin broke below the key $60,000 psychological support level during intraday trading on June 27, touching $59,023 — the lowest price since October 2024 and a fresh 20-month low. At press time, BTC had recovered slightly to around $60,600, with the 24-hour loss narrowing to about 3% and the seven-day decline totaling roughly 9%. This marks the third time this year that Bitcoin has dropped below $60,000, but unlike previous episodes, the current selloff is accompanied by a systemic shock to market confidence driven by sustained institutional capital withdrawal and a sharp shift in macroeconomic policy expectations.
Spot ETFs Suffer Longest Net Outflow Streak, Institutional Selling Pressure Intensifies
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 aggregate outflows of approximately $5.94 billion over the past 30 days — the largest institutional withdrawal wave since ETFs launched in January 2024. BlackRock's IBIT saw a single-day net outflow of $528 million on May 28, a new all-time high. The total asset under management of Bitcoin ETFs has dropped from roughly $113 billion at the start of the year to about $77.5 billion, representing a loss of over one-third of their value. According to The Block, ETFs still recorded a net outflow of about $113.8 million on June 23, indicating that the institutional withdrawal trend has not yet reversed.
The ETF redemption mechanism exacerbates selling pressure: when institutions redeem shares, authorized participants are required to sell the corresponding Bitcoin directly on the secondary market, creating continuous spot selling. CoinShares has characterized the current situation as a 'sentiment shock' rather than a structural breakdown of crypto market fundamentals.
Macro Policy Expectations Reverse, Rate Hike Risks Suppress Market
Macroeconomic factors are also exerting significant pressure on Bitcoin. U.S. job openings surged to 7.62 million in April, far exceeding expectations and hitting the highest level in nearly two years, directly pushing the 10-year Treasury yield back above 4.45%. Cleveland Fed President Beth Hammack subsequently stated publicly that if inflation remains elevated, the Fed may need to resume rate hikes. CME FedWatch data shows the market-implied probability of a rate hike by year-end has risen to over 50%. The strong bull market of 2025 was built on the liquidity expectation of 'Fed rate cuts'; once that expectation reverses and real interest rates rise, institutional capital tends to shift to low-risk assets such as bonds and cash, with Bitcoin being the first to suffer as a high-risk asset.
In the near term, all eyes are on the upcoming U.S. inflation data and the Fed's next policy signals. A CPI reading below expectations could provide a breathing window for Bitcoin, while further evidence of sticky inflation will continue to fuel downward pressure. Until the extreme panic subsides and ETF flows show a clear turning point, whether Bitcoin can hold the critical $60,000 support level may determine the next direction of this bear phase.
