Bitcoin broke below the psychologically critical $60,000 level during intraday trading on June 26, 2026, hitting a low of $59,023 — the lowest price since October 2024 and a 20-month low. At press time, BTC had recovered slightly to around $60,600, with 24-hour losses narrowing to 3% and a seven-day cumulative decline of approximately 9%. This marks the third time this year that Bitcoin has fallen below the $60,000 threshold; however, unlike the two previous quick rebounds, this sell-off is accompanied by sustained institutional capital outflows and a sharp shift in macroeconomic policy expectations, delivering a systemic blow to market confidence.
Spot ETFs Hit by Longest Net Outflow Streak Ever
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 outflows reaching approximately $5.94 billion over the past 30 days — the largest wave of institutional divestment since the products launched in January 2024. Notably, BlackRock's IBIT saw a single-day net outflow of $528 million on May 28, a record since launch. The total asset under management of Bitcoin ETFs has fallen from roughly $113 billion at the start of the year to about $77.5 billion, a decline of more than 30%. According to The Block, ETFs still recorded net outflows of about $113.8 million on June 23, indicating that the institutional withdrawal trend has yet to reverse materially.
The negative feedback loop of ETF redemption amplifies selling pressure: when institutional investors redeem shares, authorized participants are required to sell the equivalent Bitcoin on the secondary market, creating persistent spot sell pressure. CoinShares describes the current situation as a "sentiment shock" rather than a structural breakdown of crypto fundamentals.
Macro Headwinds and the Reversal of Rate-Cut Expectations
Macroeconomic pressures are also bearing down on Bitcoin. U.S. job openings surged to 7.62 million in April, far exceeding market 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 that if inflation remains persistent, the Fed may need to restart rate hikes. According to CME FedWatch data, the probability of a rate hike by year-end has risen to over 50%. Earlier this year, markets widely anticipated that the Fed would begin a rate-cutting cycle in 2026, but the stronger-than-expected job data has shaken that narrative.
In fact, the strong bull market of 2025 was fueled by the liquidity narrative centered on expected Fed rate cuts. Once that expectation reverses and real interest rates rise, institutional capital tends to rotate into low-risk assets such as bonds and cash, leaving Bitcoin — a high-risk asset — most vulnerable. In the near term, markets will focus on the upcoming U.S. inflation data and the Fed's next policy signal. If CPI comes in lower than expected, Bitcoin could find a brief reprieve; however, if inflation proves sticky, further downside pressure will accumulate. Until panic sentiment subsides and ETF flows show a clear turning point, Bitcoin's ability to defend the $60,000 level will determine the next direction of this bear market.
