Bitcoin Breaks Below $60,000, Hits 20-Month Low
Bitcoin briefly broke through the critical $60,000 psychological support during intraday trading today, dropping to $59,023—the lowest level since October 2024, a nearly 20-month low. As of press time, BTC has slightly recovered to around $60,600, narrowing the 24-hour decline to about 3%, while the seven-day cumulative drop stands at roughly 9%. This marks the third time this year Bitcoin has fallen below the $60,000 threshold, but unlike the previous two instances, this decline occurs amid sustained institutional capital outflows and a sharp shift in macroeconomic expectations, delivering a systemic blow to market confidence.
Spot ETFs Log Six Consecutive Weeks of Net Outflows: Largest Institutional Retreat Since Launch
U.S. spot Bitcoin ETFs have become the primary driver of this sell-off. 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 ETFs debuted in January 2024. BlackRock's IBIT alone saw a single-day net outflow of $528 million on May 28, a record for any ETF. Total assets under management in Bitcoin ETFs have shrunk from roughly $113 billion at the start of the year to about $77.5 billion, a decline of more than one-third. According to The Block, on June 23, ETFs still recorded net outflows of approximately $113.8 million, indicating no material reversal in the institutional exit trend. CoinShares characterizes the situation as an "emotional shock" rather than a structural breakdown in crypto market fundamentals.
Macro Headwinds Intensify: Rate Hike Expectations Resurface
Macroeconomic factors have added significant downward pressure on Bitcoin. U.S. job openings surged to 7.62 million in April, far exceeding expectations and reaching the highest level in 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 might need to resume rate hikes. CME FedWatch data shows that market pricing for a rate hike by year-end has risen above 50%. The strong bull run in 2025 was built on the liquidity expectations of Fed rate cuts; once those expectations reverse and real rates rise, institutional capital tends to shift toward low-risk assets like bonds and cash, leaving Bitcoin—a high-risk asset—vulnerable.
In the short term, all eyes are on the upcoming U.S. inflation data and the Fed's next policy signals. A CPI reading below expectations could provide Bitcoin with a breathing window; however, if inflation proves sticky, downward pressure will continue to build. Until extreme fear subsides and ETF flows show a clear inflection point, whether Bitcoin can hold the $60,000 line may determine the next direction of this bear market.
