Bitcoin pierced the crucial $60,000 psychological support level again during today's trading session, briefly falling to $59,023—the lowest since October 2024 and a fresh 20-month low. At press time, BTC had recovered slightly to around $60,600, narrowing the 24-hour loss to about 3%, while the 7-day cumulative drop stands at approximately 9%. This marks the third time Bitcoin has broken below the $60,000 threshold this year. Unlike the previous two instances, the current decline occurs amid sustained institutional capital outflows and a sharp shift in macro policy expectations, systematically eroding market confidence.
Spot Bitcoin ETFs Face Longest Net Outflow Streak, Institutional Exodus Tops $5.9 Billion
U.S. spot Bitcoin ETFs have become the primary driver of this downturn. Since mid-May, ETF products have recorded net outflows for six consecutive weeks, with the 30-day cumulative outflow reaching approximately $5.94 billion—the largest institutional withdrawal wave since their launch in January 2024. Notably, BlackRock's iShares Bitcoin Trust (IBIT) saw a single-day net outflow of $528 million on May 28, the highest daily figure on record. Total assets under management across all Bitcoin ETFs have dropped from around $113 billion at the start of the year to roughly $77.5 billion, a shrinkage of more than 30%.
According to The Block, on June 23, ETFs still recorded a net outflow of approximately $113.8 million, indicating that the institutional sell-off has not yet shown a meaningful reversal. The mechanics of ETF outflows exacerbate selling pressure: when institutions redeem shares, authorized participants must sell the corresponding Bitcoin directly on the secondary market, creating persistent spot selling. CoinShares characterizes the current situation as an “emotional shock,” arguing that it does not reflect a structural deterioration of the crypto market's fundamentals.
Macro Headwinds Amplify: Rate Hike Expectations Crush Risk Assets
Macroeconomic factors are also exerting significant downward pressure on Bitcoin. The U.S. 4-month job openings 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 then publicly stated 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 bullish 2025 rally was built on the liquidity expectation of Fed rate cuts. Once that expectation reverses and real interest rates rise, institutional capital tends to rotate into low-risk assets such as bonds and cash, with Bitcoin—a high-risk asset—bearing the brunt. In the near term, the market's focus will be on upcoming U.S. inflation data and the Fed's next policy signals. A lower-than-expected CPI print could provide Bitcoin with a relief window; however, if inflation proves sticky, downward pressure will continue to accumulate. Until extreme panic subsides and ETF flows show a clear turning point, whether Bitcoin can hold the $60,000 defense line may determine the next direction of this bear market.
