Bitcoin fell below the $60,000 mark again, touching an intraday low of $59,023 before recovering to around $60,600. The move leaves the cryptocurrency down roughly 9 percent over the past week, as persistent outflows from spot ETFs and rising interest rate expectations continue to pressure prices.
This is the third time this year bitcoin has broken below $60,000, underscoring weakening market momentum after a strong start to 2025.
Etf outflows deepen selling pressure
U.S. spot bitcoin ETFs have now recorded multiple consecutive weeks of net outflows, with about $5.94 billion withdrawn over the past month. Total ETF assets have declined from nearly $113 billion earlier this year to around $77.5 billion, a drop exceeding 30 percent.
Large redemptions have amplified the pressure. BlackRock’s IBIT fund alone saw a $528 million outflow in a single day, its largest since launch. More recently, daily outflows have continued, though at a slower pace, with about $68 million withdrawn in the latest weekly data compared with $1.72 billion in early June.
Because ETF redemptions require selling bitcoin in the open market, these withdrawals have translated directly into sustained downward pressure on spot prices. Analysts describe the trend as a sharp shift in sentiment rather than a structural breakdown in the crypto market.
Macro conditions dampen demand
Stronger-than-expected U.S. economic data has reinforced expectations that interest rates could remain elevated. Job openings rose to 7.62 million, while the yield on 10-year Treasury notes climbed above 4.45 percent.
Recent inflation data showed annual price growth accelerating to 4.2 percent in May, strengthening the case for a prolonged restrictive policy stance. Federal Reserve officials have signaled that further rate increases remain possible, and market pricing now reflects better-than-even odds of another hike before year-end.
The shift has reversed earlier expectations of rate cuts that helped fuel bitcoin’s rally. As yields rise, capital has increasingly moved toward bonds and cash, leaving higher-risk assets like bitcoin under pressure.
Capital rotation and weakening demand
Market activity suggests capital is rotating away from crypto and into other sectors, particularly AI-related equities. This shift has reduced buying support, marking a clear change from the demand-driven rallies seen in previous cycles.
On-chain data shows the average acquisition cost for holders sits near $53,000 to $53,600, a level often viewed as a key support zone during downturns. Some large corporate holders are now sitting on unrealized losses across purchases made over the past two years.
CryptoQuant analysts warn that weak demand recovery could extend bear market conditions into late 2026 or early 2027.
Diverging forecasts and key levels
Outlooks remain mixed. Some analysts, including 21Shares and Standard Chartered, maintain that bitcoin could still reach $100,000 by the end of the year, citing historical post-halving corrections.
Others are more cautious. BitMEX co-founder Arthur Hayes has pointed to a possible decline toward $40,000 within months, while prediction market data suggests a significant probability of prices falling below $50,000 before 2026 ends.
Traders are closely watching upcoming inflation data and Federal Reserve signals. In the near term, analysts highlight key price levels shaping the market:
- Support is seen near $53,600, the realized on-chain cost basis
- Initial resistance sits around $67,500
- A stronger barrier lies between $68,500 and $72,000
A softer inflation reading could ease pressure on bitcoin, while persistent inflation may deepen the downturn. Whether the price can hold above $60,000 is expected to be a decisive factor for the direction of the current cycle.
Worried about this dip? Learn if it’s a buy-the-dip moment in When is the Best Time to Buy Bitcoin.
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