Bitcoin fell through the critical $60,000 support level during intraday trading on [date], hitting a low of $59,023 – its lowest point since October 2024, marking a nearly 20-month low. At press time, BTC had recovered modestly to around $60,600, narrowing its 24-hour loss to about 3%, with a 7-day cumulative decline of roughly 9%.
This is the third time this year that Bitcoin has breached the $60,000 mark. Unlike previous episodes, the current drop is occurring against a backdrop of sustained institutional capital flight and a sharp shift in macroeconomic policy expectations, causing a systemic blow to market confidence.
Reason 1: Spot ETFs Record Longest Net Outflow Streak
U.S. spot Bitcoin ETFs have been the primary driver of this sell-off. Since mid-May, ETFs have recorded net outflows for six consecutive weeks, with total capital leakage 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, an all-time record. The total asset size of Bitcoin ETFs has fallen from about $113 billion at the start of the year to roughly $77.5 billion, evaporating more than a third. According to The Block, on June 23, ETFs still recorded net outflows of about $113.8 million, indicating the outflow trend has not yet reversed.
The ETF outflows create a negative feedback loop: when institutions redeem shares, authorized participants must sell the corresponding Bitcoin on the secondary market, generating constant spot selling pressure. CoinShares characterizes the situation as an “emotional shock,” arguing it does not reflect a structural breakdown in crypto fundamentals. Whether institutional selling pressure will ease in the coming weeks remains a key market signal.
Reason 2: Macro Policy Shift – Rate-Cut Hopes Reversed
Macroeconomic factors have exerted additional downward pressure on Bitcoin. U.S. job openings in April surged to 7.62 million, well above expectations and the highest in nearly two years, pushing the 10-year Treasury yield back above 4.45%. Cleveland Fed President Beth Hammack subsequently stated that if inflation remains high, the Fed may need to resume rate hikes. According to CME FedWatch, market pricing for a rate hike by year-end has risen above 50%.
The strong bull market of 2025 was built on the liquidity expected from Fed rate cuts. Once rate-cut expectations reverse and real interest rates rise, institutional capital tends to shift toward low-risk assets like bonds and cash. Bitcoin, as a high-risk asset, bears the brunt of this rotation.
Outlook: $60K Support and Inflation Data in Focus
In the near term, market attention will center on the upcoming U.S. inflation data and the Fed’s next policy signals. If CPI comes in below expectations, Bitcoin could find a respite. Conversely, if inflation proves sticky, further downward pressure will accumulate. Until panic subsides and ETF flows show a clear turning point, the $60,000 line will be the defining battleground for the direction of the current bear phase.
