Bitcoin fell below the critical $60,000 psychological support level during today's trading session, hitting a low of $59,023 — the lowest since October 2024 and a 20-month low. At press time, BTC has recovered slightly to around $60,600, narrowing its 24-hour drop to about 3%, while the seven-day decline stands at approximately 9%.
This marks the third time this year that Bitcoin has breached the $60,000 threshold. Unlike the previous two instances, this decline occurs against a backdrop of sustained institutional capital outflows and a sharp shift in macroeconomic policy expectations, systematically undermining market confidence.
Spot ETFs Face Longest Net Outflow Streak on Record
U.S. spot Bitcoin ETFs are the primary driver of this sell-off. Since mid-May, ETFs have recorded net outflows for six consecutive weeks, with cumulative outflows of approximately $5.94 billion over 30 days — the largest institutional withdrawal wave since the products launched in January 2024. BlackRock's IBIT saw a single-day net outflow of $528 million on May 28, a record high since inception. Total assets under management in Bitcoin ETFs have fallen from around $113 billion at the start of the year to about $77.5 billion, a decline of over one-third. Notably, according to The Block, ETFs still recorded a net outflow of about $113.8 million on June 23, indicating that the institutional withdrawal trend has not reversed materially. Whether sell pressure from institutions eases will be a key observation point for the market.
The mechanics of ETF net outflows amplify selling pressure: when institutions redeem shares, authorized participants must sell the corresponding Bitcoin directly on the secondary market, creating sustained spot market sell pressure. CoinShares describes the current situation as a "sentiment shock," arguing that it does not represent a structural breakdown of crypto market fundamentals.
Macro Policy Shift Weighs on Risk Assets
Macroeconomic factors are also exerting significant pressure on Bitcoin. The U.S. JOLTS report showed job openings surging to 7.62 million in April, 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 publicly 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 by year-end has risen above 50%.
The strong bull market of 2025 was built on the liquidity expectations of "Fed rate cuts." Now that rate-cut expectations have reversed and real interest rates are rising, institutional capital tends to rotate into low-risk assets such as bonds and cash, with Bitcoin — a high-risk asset — bearing the brunt of the sell-off.
Near-Term Outlook and Key Levels
In the short term, market attention will focus on upcoming U.S. inflation data and the Fed's next policy signals. If the CPI reading comes in below expectations, it could provide a breather for Bitcoin. However, if inflation proves sticky again, the pressure to push lower will continue to build. Until extreme fear subsides and ETF flows show a clear inflection point, whether Bitcoin can defend the $60,000 line may determine the next direction of this bear market.
