Bitcoin drops below $60,000 as ETF outflows, rate fears converge

Bitcoin dropped 3.8% to as low as $59,840 on Friday, its weakest level in 20 months, as a convergence of macro and on-chain headwinds broke the key psychological threshold.

Spot bitcoin ETFs recorded $3.4 billion in outflows over the past two weeks, CoinShares data shows, as investors shifted capital into AI-related equities that have powered the S&P 500 to an 8% gain this year.

The selloff deepened after Strategy, the largest corporate holder of bitcoin, sold 32 BTC for about $2.5 million — its first sale since December 2022. Open interest across major exchanges fell 12% over the past week, Coinglass data shows, while funding rates flipped negative on Binance and OKX, reflecting bearish positioning among leveraged traders. The May jobs report, which showed the U.S. economy added far more jobs than expected, prompted markets to fully price in a Fed rate hike, reversing earlier expectations for cuts.

The break below $60,000 opens the path to a test of the $55,000 support zone, a level not seen since February 2024, with the next major resistance at $65,000. The Federal Reserve's July 29 rate decision will be the next macro catalyst for the market.

The broader crypto market followed bitcoin lower. Ethereum dropped 9.6% to $1,598, while Solana fell 5.9% and XRP declined 5.3%, CoinGecko data shows. The aggregate crypto market capitalization has shrunk by about $600 billion since May 10, falling from $2.7 trillion to $2.1 trillion, with bitcoin's dominance at 58%.

Bitcoin is now down more than 52% from its all-time high of $126,186 set in October 2025. Shares of Strategy have lost more than 20% of their value in 2026, while Coinbase stock has fallen about a third.

Michael Saylor, chairman of Strategy, struck a bullish tone on the selloff. "Volatility creates opportunity," he wrote on X on June 4.

This article is for informational purposes only and does not constitute investment advice.