Market Overview: Bitcoin Hits 20-Month Low Below $60K
Bitcoin pierced the critical $60,000 support level during intraday trading, falling to $59,023 — its lowest since October 2024 and a 20-month trough. As of press time, BTC had recovered slightly to around $60,600, with the 24-hour loss narrowing to roughly 3% and a seven-day decline of about 9%. This marks the third time this year Bitcoin has fallen below the $60,000 round number. Unlike previous dips, the current sell-off occurs against a backdrop of persistent institutional capital flight and a dramatic reversal in macro policy expectations, delivering a systemic blow to market confidence.
Primary Driver: Spot ETFs Experience Longest Net Outflow Streak
US spot Bitcoin ETFs have emerged as the primary catalyst for the decline. Since mid-May, ETFs have recorded net outflows for six consecutive weeks, with cumulative outflows of approximately $5.94 billion over the past 30 days — the largest institutional withdrawal wave since the products launched in January 2024. BlackRock's IBIT posted a single-day net outflow of $528 million on May 28, a record since inception. The total asset size of Bitcoin ETFs has plunged from roughly $113 billion at the start of the year to approximately $77.5 billion, a decline of over 30%. Notably, according to The Block, ETFs still recorded a net outflow of approximately $113.8 million on June 23, indicating no substantive reversal in institutional selling pressure. The circular effect of ETF outflows is: when institutions redeem shares, authorized participants must sell the corresponding Bitcoin directly on the secondary market, creating sustained spot selling pressure. CoinShares characterizes the current situation as an 'emotional shock' rather than a structural breakdown of crypto market fundamentals.
Macro Headwinds: Rate Cut Reversal and Rising Tightening Risk
Macroeconomic forces are also weighing heavily on Bitcoin. US job openings surged to 7.62 million in April, far exceeding expectations and marking a two-year high, which 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 shows the market now assigns a greater than 50% probability to a rate hike by year-end. 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 low-risk assets like bonds and cash, leaving Bitcoin — a high-risk asset — as the first to be sold off. In the near term, market focus will center on upcoming US inflation data and the Fed's next policy signals. A CPI reading below expectations could provide Bitcoin with a breathing window, while another confirmation of sticky inflation will continue to build downward pressure.
