Bitcoin Breaks $60K, Institutional Exodus Deepens
Bitcoin fell below the critical psychological support of $60,000 during today's session, hitting a low of $59,023—the lowest level since October 2024, marking a nearly 20-month low. As of press time, BTC has recovered slightly to around $60,600, with 24-hour losses narrowing to approximately 3% and a seven-day decline of about 9%. This marks the third time this year Bitcoin has breached the $60,000 threshold, but unlike previous instances, this sell-off is accompanied by systemic institutional capital outflows and a sharp shift in macroeconomic policy expectations, severely damaging market confidence.
Spot ETF Suffers Longest Net Outflow Streak on Record
U.S. spot Bitcoin ETFs have become the primary driver of this decline. Since mid-May, ETFs have recorded net outflows for six consecutive weeks, with cumulative outflows reaching approximately $5.94 billion over the past 30 days—the largest institutional withdrawal wave since their launch in January 2024. Notably, BlackRock's IBIT saw a single-day net outflow of $528 million on May 28, a record high. Total assets under management of Bitcoin ETFs have fallen from roughly $113 billion at the start of the year to around $77.5 billion, losing more than one-third of their value. According to The Block, net outflows on June 23 still amounted to approximately $113.8 million, suggesting no material reversal in the institutional selling pressure. CoinShares characterizes the situation as a "sentiment shock" rather than a structural breakdown in crypto fundamentals. The ETF feedback loop exacerbates selling: when institutions redeem shares, authorized participants must sell corresponding Bitcoin directly in the secondary market, creating sustained spot selling pressure.
Macro Policy Shift: Rate Hike Expectations Return to Weigh on Risk Assets
Macroeconomic factors are also exerting notable pressure. U.S. job openings surged to 7.62 million in April, far exceeding expectations and reaching the highest level in nearly two years, directly pushing 10-year Treasury yields back above 4.45%. Cleveland Fed President Beth Hammack subsequently warned that if inflation remains elevated, the Fed may need to resume rate hikes. CME FedWatch data shows the market pricing a more than 50% probability of a rate hike by year-end. The robust bull market in 2025 was built on liquidity expectations of Fed rate cuts; once those expectations reverse and real interest rates rise, capital tends to rotate into lower-risk assets such as bonds and cash, leaving Bitcoin—a high-risk asset—most vulnerable. In the near term, market attention is focused on upcoming U.S. inflation data and the Fed's next policy signals. If CPI comes in lower than expected, it could provide a temporary relief window for Bitcoin. However, if inflation proves sticky again, downward pressure will continue to build. Until extreme panic subsides and ETF flows show a clear turning point, whether Bitcoin can hold the critical $60,000 defense line may determine the next direction of this bear market.
