Bitcoin pierced the key psychological support of $60,000 during today's trading session, dropping as low as $59,023 — its lowest point since October 2024, marking a fresh 20-month low. At press time, BTC had recovered slightly to around $60,600, narrowing its 24-hour loss to roughly 3%, while the seven-day decline stands at about 9%. This is the third time this year that Bitcoin has broken below the $60,000 round number. Unlike the previous two instances, this sell-off is unfolding against a backdrop of sustained institutional capital flight and a sharp shift in macro policy expectations, delivering a systemic blow to market confidence.
Primary Cause: Spot ETFs Experience Longest Net Outflow Streak Ever
U.S. spot Bitcoin ETFs are the core driver of this downturn. Since mid-May, ETFs have recorded net outflows for six consecutive weeks, with cumulative losses of approximately $5.94 billion over 30 days — the largest institutional withdrawal wave since the 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 on record. The total asset size of Bitcoin ETFs has fallen from roughly $113 billion at the start of the year to about $77.5 billion — a decline of over 30%. According to The Block data, even on June 23, ETFs still recorded a net outflow of $113.8 million, indicating that the institutional pullback has yet to show a meaningful reversal. The mechanism behind ETF outflows is cyclical: when institutions redeem shares, authorized participants must sell the corresponding Bitcoin directly on the secondary market, creating persistent spot selling pressure. CoinShares characterizes the situation as a “sentiment shock,” arguing that it does not represent a structural breakdown of crypto market fundamentals.
Secondary Cause: Macro Policy Pivot and Rising Rate Hike Expectations
Macroeconomic pressures on Bitcoin are equally hard to ignore. U.S. job openings in April surged to 7.62 million, far exceeding expectations and hitting a two-year high, which propelled the 10-year Treasury yield back above 4.45%. Cleveland Fed President Beth Hammack subsequently stated publicly that if inflation remains stubbornly high, the Fed may need to resume rate hikes. CME FedWatch data shows the market-implied probability of a rate hike by year-end has risen above 50%. The strong bull market of 2025 was built on the liquidity expectation of Fed rate cuts; once that expectation reverses and real interest rates rise, institutional capital tends to rotate into bonds, cash, and other low-risk assets, leaving Bitcoin — a high-risk asset — most vulnerable. In the near term, market attention will focus on upcoming U.S. inflation data and the Fed's next policy signals. A lower-than-expected CPI reading could provide a breather for Bitcoin; but if it confirms sticky inflation, the downside pressure will persist. With extreme fear still lingering and ETF flows yet to show a clear turning point, whether Bitcoin can defend the $60,000 line may determine the next direction of this bearish phase.
