Bitcoin pierced the critical $60,000 psychological support level during trading today, briefly dropping to $59,023 — the lowest point since October 2024, marking a nearly 20-month low. As of press time, BTC had recovered slightly to around $60,600, with 24-hour losses narrowing to approximately 3%. Over the past seven days, Bitcoin has declined about 9%. This is the third time this year that Bitcoin has broken below the $60,000 round number. Unlike previous instances, this decline is occurring against a backdrop of persistent institutional capital outflows and a sharp shift in macroeconomic policy expectations, leading to a systemic blow to market confidence.
Spot ETFs See Longest Net Outflow Streak
U.S. Bitcoin spot ETFs have become the core driver of this downturn. Since mid-May, ETFs have recorded net outflows for six consecutive weeks, with total outflows of approximately $5.94 billion over the past 30 days — the largest institutional withdrawal wave since the ETFs launched in January 2024. Notably, BlackRock's IBIT experienced a single-day net outflow of $528 million on May 28, a record high since its listing. The total asset under management of Bitcoin ETFs has fallen from around $113 billion at the start of the year to roughly $77.5 billion, a decline of over 30%. According to The Block, ETF net outflows continued on June 23 with about $113.8 million, indicating the institutional selling pressure has not yet reversed substantially. CoinShares characterizes the situation as an "emotional shock" rather than a structural breakdown of the crypto market's fundamentals.
Macro Pressure: Rate Hike Expectations and Flight to Safety
Macroeconomic factors are also weighing heavily on Bitcoin. U.S. job openings for April surged to 7.62 million, significantly above market expectations and 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 resume rate hikes. CME FedWatch data now shows a probability of over 50% that the Fed will raise rates by year-end. The strong bull market in 2025 was built on the liquidity narrative of Fed rate cuts; once that expectation reverses and real interest rates rise, institutional funds naturally rotate toward lower-risk assets like bonds and cash, leaving Bitcoin — a high-risk asset — most vulnerable.
Outlook: The $60,000 Line in the Sand
In the near term, all eyes are on the upcoming U.S. inflation data and the Fed's next policy signals. If CPI comes in below expectations, it could provide a temporary reprieve for Bitcoin. Conversely, if inflation proves sticky, downside pressure will likely intensify. With extreme fear still dominating sentiment and no clear inflection point in ETF flows, whether Bitcoin can defend the $60,000 level may determine the next direction of this bear market.
