Bitcoin broke below the key $60,000 psychological support level during intraday trading on June 27, hitting a low of $59,023—its lowest level since October 2024 and a 20-month low. At press time, BTC had recovered slightly to around $60,600, narrowing its 24-hour decline to roughly 3%, while the seven-day cumulative drop stood at about 9%. This is the third time this year that Bitcoin has fallen below the $60,000 mark, but unlike the previous two instances, this sell-off comes amid a sustained institutional capital exodus and a sharp shift in macroeconomic policy expectations, systematically undermining market confidence.
ETF Outflows Hit Record Streak, Single-Day Drain Sets New High
U.S. spot Bitcoin ETFs have been the primary driver behind this decline. Since mid-May, ETFs have recorded net outflows for six consecutive weeks, with total withdrawals reaching approximately $5.94 billion over the past 30 days—the largest institutional capital flight since ETFs launched in January 2024. Notably, BlackRock’s IBIT saw a single-day net outflow of $528 million on May 28, the highest daily figure since the fund’s inception. The total asset size of Bitcoin ETFs has shrunk from about $113 billion at the start of the year to roughly $77.5 billion, a decline of over 30%. According to data from The Block, even on June 23, ETFs still recorded a net outflow of about $113.8 million, indicating that the capital exodus has yet to reverse substantively. The key question for the market remains whether institutional selling pressure will ease in the coming days.
The ETF feedback loop amplifies the selling pressure: when institutions redeem their 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 a “sentiment shock,” arguing that it does not reflect a structural breakdown of the crypto market’s fundamentals.
Macro Policy Expectations Reverse, Hiking Risk Weighs on Risk Assets
The macro environment is also exerting significant pressure on Bitcoin. The number of U.S. job openings in April rose 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 Federal Reserve 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%.
The strong bull market of 2025 was built on the liquidity expectation of Fed rate cuts. Once those expectations reverse and real interest rates rise, institutional capital tends to shift toward low-risk assets such as bonds and cash, leaving Bitcoin—as a high-risk asset—most vulnerable. In the near term, the market’s focus will be on the upcoming U.S. inflation data and the Fed’s next policy signals. If the CPI reading comes in below expectations, it could provide a breathing window for Bitcoin. Conversely, if inflation stickiness is reaffirmed, the downward pressure will continue to build. Until extreme fear subsides and ETF flows show a clear turning point, Bitcoin’s ability to hold the $60,000 line may determine the next direction of this bear cycle.
