Bitcoin has once again breached the critical psychological support of $60,000 during intraday trading, dropping to as low as $59,023 — the lowest level since October 2024, marking a nearly 20-month low. As of press time, BTC has slightly recovered from the low to trade around $60,600, narrowing the 24-hour loss to about 3%, while the seven-day cumulative decline stands at approximately 9%. This is the third time this year that bitcoin has broken below the $60,000 round number. Unlike the previous two occasions, this selloff is occurring against a backdrop of sustained institutional capital withdrawal and a sharp shift in macroeconomic policy expectations, systematically undermining market confidence.
Spot ETFs See Longest Net Outflow Streak
U.S. spot bitcoin ETFs have been the core driver of this decline. Since mid-May, ETFs have recorded net outflows for six consecutive weeks, with a cumulative $5.94 billion drained over the past 30 days — the largest institutional withdrawal wave since their launch in January 2024. Among them, BlackRock's IBIT posted a single-day net outflow of $528 million on May 28, the highest single-day record since inception. Total assets under management of bitcoin ETFs have fallen from approximately $113 billion at the start of the year to around $77.5 billion, a decline of over 30%. Notably, according to The Block, ETFs still recorded a net outflow of approximately $113.8 million on June 23, indicating that the institutional exodus has yet to materially reverse. Whether selling pressure from institutions will ease in the coming weeks will be a key observation window for the market.
The vicious cycle of ETF outflows works as follows: when institutions redeem shares, authorized participants must sell the corresponding bitcoin directly on the secondary market, creating sustained spot selling pressure. CoinShares has characterized the current situation as an 'emotional shock,' arguing that it does not represent a structural breakdown of the crypto market's fundamentals.
Macro Reversal: Rate Hike Risks Re-Emerge
Macroeconomic factors are also imposing significant headwinds on bitcoin. U.S. job openings in April surged to 7.62 million, far exceeding market expectations and hitting the highest level in nearly two years. This directly pushed the 10-year Treasury yield back above 4.45%. Cleveland Fed President Beth Hammack subsequently stated publicly that if inflation remains persistent, the Fed may need to resume rate hikes. According to CME FedWatch data, the market's implied probability of a rate hike by year-end has risen to over 50%.
In contrast, the strong bull market of 2025 was built on the liquidity narrative of 'Fed rate cuts.' Once the expectation of rate cuts reverses and real interest rates rise, institutional capital tends to rotate into low-risk assets such as bonds and cash, with bitcoin — as a high-risk asset — bearing the brunt. In the short term, market attention will focus on the upcoming U.S. inflation data and the Fed's next policy signals. If CPI figures come in below expectations, it could provide a brief respite for bitcoin; if they confirm inflation stickiness, further downside pressure will accumulate. With extreme fear sentiment still lingering and ETF flows yet to show a clear inflection point, whether bitcoin can defend the $60,000 line may determine the next direction of this bear market.
