Bitcoin Plunges Below $60K to 20-Month Low
Bitcoin violated the key $60,000 support level during Monday's trading session, falling as low as $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 roughly 3% and a seven-day decline of about 9%. This is the third time this year that Bitcoin has broken below the $60,000 level. Unlike the previous two instances, this breakdown is unfolding against a backdrop of sustained institutional capital outflows and a sharp shift in macroeconomic expectations, systematically eroding market confidence.
Spot ETFs Endure Longest Net Outflow Streak
U.S. spot Bitcoin ETFs have been the primary catalyst for the current decline. Since mid-May, these funds have recorded net outflows for six consecutive weeks, with nearly $5.94 billion leaving in the past 30 days—the largest institutional withdrawal wave since the ETFs launched in January 2024. BlackRock's IBIT saw a single-day net outflow of $528 million on May 28, a record high. Total assets under management across Bitcoin ETFs have fallen from roughly $113 billion at the start of the year to about $77.5 billion, a decline of over 30%. According to The Block, ETFs still recorded a net outflow of approximately $113.8 million on June 23, indicating the institutional exodus has yet to reverse meaningfully. The ETF outflow creates a vicious cycle: when institutions redeem shares, authorized participants must sell the underlying Bitcoin directly on the secondary market, generating persistent spot selling pressure. CoinShares characterizes the situation as a 'sentiment shock,' arguing it does not reflect a structural deterioration of crypto fundamentals.
Macro Headwinds: Surging Yields and Rate Hike Risk
Macroeconomic factors are also compounding the pressure on Bitcoin. U.S. job openings soared to 7.62 million in April, far exceeding expectations and hitting the highest level in nearly two years. That pushed the 10-year Treasury yield back above 4.45%. Cleveland Fed President Beth Hammack subsequently warned that if inflation remains elevated, the Federal Reserve may need to resume rate hikes. CME FedWatch data now implies 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 tailwind of expected Fed rate cuts. As that narrative reverses and real interest rates rise, institutional capital gravitates toward bonds and cash, leaving riskier assets like Bitcoin vulnerable. In the near term, all eyes will be on upcoming U.S. inflation data and any further policy signals from the Fed. A lower-than-expected CPI reading could provide Bitcoin with a temporary reprieve; but if inflation proves sticky, further downside pressure will build. With extreme fear still gripping the market and no clear inflection point in ETF flows, Bitcoin's ability to defend the $60,000 level could determine the next phase of this bear cycle.
