Bitcoin slipped below $59,000 late Thursday before rebounding, as weak risk sentiment swept across global markets and dragged cryptocurrencies and Asian equities lower.
The largest cryptocurrency fell to an intraday low near $58,200 before recovering to about $59,890 by late evening. The move came alongside broad losses in Asia, where South Korea’s Kospi plunged more than 8%, triggering a circuit breaker, Japan’s Nikkei 225 dropped 4.9%, and Hong Kong’s Hang Seng Index declined 2.3%.
inflation and rate outlook weigh on markets
The pullback followed fresh U.S. inflation data that reinforced expectations of tighter monetary policy. The Personal Consumption Expenditures price index rose 4.1% year over year in May, while core PCE increased 3.4%. The figures have kept speculation alive that the Federal Reserve may hold rates higher for longer.
After its June meeting, the central bank maintained its benchmark rate at 3.50%–3.75% but signaled a more hawkish stance. Updated projections showed that half of policymakers expect at least one rate hike before the end of 2026. Under Chair Kevin Warsh, several major banks have revised their outlooks to include additional rate increases, adding pressure on risk-sensitive assets like cryptocurrencies.
ETF outflows deepen selling pressure
U.S. spot Bitcoin ETFs recorded $696.3 million in net outflows on Thursday, the largest single-day withdrawal since late May. This extended a streak of six consecutive days of redemptions. Data from June 25 also showed heavy selling, including $265.7 million exiting BlackRock’s IBIT and $274.5 million leaving Fidelity’s FBTC.
The sustained outflows have become a key headwind, reinforcing downward pressure during periods of macro uncertainty.
key levels come into focus for Bitcoin
Market analysts now view $60,000 as a critical threshold for Bitcoin. Immediate support is seen in the $57,885 to $58,725 range, with stronger structural support between $54,000 and $56,000. A sustained break below these levels could open the way toward deeper declines near $52,200.
Traders are also closely monitoring derivatives positioning and ETF flows for signs of short-term direction.
Ethereum and XRP track broader weakness
Ethereum fell 3.8% to around $1,555, slipping below a key support area near $2,000 and approaching a long-term floor established in early 2023. The asset has faced persistent pressure from 13 consecutive sessions of outflows in Ethereum-linked exchange-traded products.
Market pricing suggests limited optimism for a near-term recovery, with low probability assigned to a move back above $2,000 in the short term.
XRP dropped 3.6% to $1.03, continuing to trade within a tight range after failing to break resistance around $1.46. Attention remains on potential regulatory developments, including the proposed CLARITY Act, which could shape its next move.
strategy concerns add to market unease
Additional pressure came from renewed concerns Øول Strategy’s STRC perpetual preferred stock, which fell roughly 25% below its $100 par value to trade in the mid-$70 range. The company’s common shares also dropped to their lowest level since February 2024.
Despite holding more than 847,000 BTC and over $1.4 billion in cash, the decline in its preferred stock reflects growing skepticism among traders about the sustainability of its dividend structure. The situation raises questions about the firm’s future ability to raise capital and adds another layer of risk to an already fragile market environment.
near-term focus remains on macro data
With volatility elevated, traders are watching upcoming U.S. data, including jobless claims, for further clues on the economic outlook and Federal Reserve policy path.
For now, the combination of persistent ETF outflows, high interest rates, and weakening global equities continues to create a challenging backdrop for digital assets.
Worried about volatility as bitcoin tests key support? Learn how to navigate swings with our concise guide on market correction signals.
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