Bitcoin Breaks $60,000 Support, Hits 20-Month Low
Bitcoin dipped below the critical $60,000 psychological support level during intraday trading on June 27, reaching as low as $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, with the 24-hour loss narrowing to about 3% and a seven-day cumulative decline of approximately 9%. This is the third time this year that Bitcoin has broken below $60,000, but unlike previous instances, the current downturn is accompanied by sustained institutional capital outflows and a sharp shift in macroeconomic policy expectations, leading to a systemic blow to market confidence.
Spot ETFs Suffer Longest Net Outflow Streak
U.S. spot Bitcoin ETFs have been a primary driver of the decline. Since mid-May, ETFs have recorded net outflows for six consecutive weeks, with a cumulative outflow of approximately $5.94 billion over 30 days — the largest withdrawal wave since ETFs launched in January 2024. Notably, BlackRock's IBIT experienced a single-day net outflow of $528 million on May 28, an all-time high. The total asset size of Bitcoin ETFs has dropped from about $113 billion at the beginning of the year to around $77.5 billion, a loss of over one-third. According to The Block, ETFs still recorded a net outflow of approximately $113.8 million on June 23, indicating that institutional selling pressure has not yet reversed. The ETF outflow creates a vicious cycle: when institutions redeem shares, authorized participants must sell the corresponding Bitcoin directly on the secondary market, generating persistent spot selling pressure. CoinShares characterized the situation as an "emotional shock," arguing that it does not reflect a structural breakdown of the crypto fundamentals. Whether institutional selling will ease in the coming weeks remains a key observation window for the market.
Macro Headwinds: Rate Hike Expectations Return
On the macro front, U.S. job openings in April surged to 7.62 million, far exceeding expectations and reaching 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 that if inflation remains elevated, the Fed may need to restart rate hikes. According to CME FedWatch data, the market's implied probability of a rate hike before year-end has risen to over 50%. The strong bull market of 2025 was built on liquidity expectations of Fed rate cuts; once those expectations reverse and real interest rates rise, institutional capital tends to rotate into low-risk assets like bonds and cash, and Bitcoin, as a high-risk asset, is the first to be affected. In the short term, market attention will focus on upcoming U.S. inflation data and subsequent Fed policy signals. If CPI comes in below expectations, Bitcoin may find a temporary relief window; if inflation stickiness is confirmed, further downside pressure will accumulate. Until extreme fear subsides and ETF flows show a clear turning point, whether Bitcoin can hold the $60,000 defense line will determine the next direction of the current bear market.
