Bitcoin Drops Below $60K as ETF Exodus, Fed Pressure and Global Risks Shake Crypto Markets

Bitcoin’s latest sell-off has pushed the cryptocurrency market into a wave of uncertainty, with BTC falling beneath the $60,000 mark as multiple pressures collided to create one of the harshest corrections in recent months.

The leading cryptocurrency briefly touched levels last seen in October 2024, wiping out weeks of gains in a rapid decline. Bitcoin was trading near $59,500 after losing more than 10% in a single day, leaving investors questioning whether the market has entered a deeper downturn or simply reached another major support zone.

The decline was not driven by one specific trigger. Instead, several factors combined to pressure sentiment, including continued Bitcoin ETF withdrawals, renewed inflation concerns and a more aggressive stance from the U.S. Federal Reserve.

Spot Bitcoin ETFs recorded another wave of outflows, extending a streak of withdrawals as investors reduced exposure. BlackRock’s Bitcoin ETF saw the largest redemptions, while some competing funds managed to attract smaller inflows, highlighting a divided institutional market.

Adding to the pressure, rising geopolitical tensions pushed oil prices higher and revived concerns that inflation could remain elevated. The shift in expectations around the Federal Reserve’s monetary policy created additional selling pressure across risk assets, with traders becoming less confident about future rate cuts.

Corporate Bitcoin sentiment also faced scrutiny after Strategy, one of the largest corporate holders of BTC, sold a small amount of its holdings — a move that challenged its long-standing reputation as a company committed to continuous accumulation.

However, some market analysts argue that Bitcoin’s decline may represent a bottoming phase rather than the start of a prolonged bear market.

Standard Chartered’s digital asset research team maintained a bullish outlook, suggesting that Bitcoin’s move toward $59,000 could mark a cycle low. The bank pointed to three potential catalysts for recovery: renewed ETF demand, continued corporate treasury purchases and easing oil prices as geopolitical tensions cool.

Signs of stabilization have already emerged. Bitcoin ETFs recorded a return to positive flows after several days of losses, with some funds attracting fresh demand. Meanwhile, corporate buyers continued accumulating Bitcoin despite the market weakness, with Strategy adding more BTC and other firms increasing their exposure.

On-chain data also shows that a significant portion of Bitcoin supply is currently held at a loss. Historically, similar periods have often appeared near major market bottoms, suggesting that heavy selling pressure may be nearing exhaustion.

While Bitcoin’s short-term outlook remains uncertain, the latest correction has placed the market at a critical point — balancing fears of further downside against signs that long-term investors are stepping in.