Bitcoin Tests $58K, ETF Outflows Hit $1.35B as Crypto Rout Deepens

Bitcoin hovered around $60,000 on June 26, little changed on the day but nursing a roughly 7% weekly loss — its worst three-week stretch — after printing a 21-month low near $58,100 earlier in the run. The stabilization represented a pause rather than a reversal, as macroeconomic headwinds and persistent selling from institutional products kept the market defensive.

The pressure came from outside crypto. A hawkish turn at the Federal Reserve, following the latest US inflation data, has investors pricing in the possibility of a rate hike later this year. That has pushed the dollar and bond yields higher, sapping appetite for speculative, non-yielding assets. The same risk-off mood has hit tech and AI stocks, with money rotating away from digital assets.

Underneath, the capital drain continued. Spot Bitcoin exchange-traded funds saw a seventh consecutive week of net withdrawals, with about $1.35 billion exiting this week alone, according to Rio Times. Nasdaq reported $1.3 billion in spot ETF redemptions over the past week, noting a shift in institutional behavior: rather than buying the dip, some investors are reducing positions. On Thursday alone, SoSoValue data showed net outflows of $696.3 million from spot Bitcoin ETFs and $81.9 million from spot Ethereum ETFs, as reported by Benzinga. The cumulative outflow over the past month has exceeded $6 billion, Rio Times reported. Source 4 (cryptonews.com) noted that $3 billion in outflows rattled markets, with MicroStrategy (now trading as Strategy) shares plunging 10% and Bitcoin retesting $58,000.

The selling pressure extended to derivatives. Coinglass data cited by Benzinga showed 90,825 traders were liquidated in the past 24 hours for $484.09 million.

Most major tokens were lower on the week, though Solana bucked the trend. SOL rose about 8.4% on the day to $71.85 according to Nasdaq, and was up on the week, supported by increasing tokenized stock issuance on its network. Aave also gained on token-buyback chatter, according to Rio Times.

The largest corporate holder of Bitcoin, Michael Saylor’s Strategy, came under heightened scrutiny. Nasdaq reported that Strategy shares have fallen nearly 50% in the past month, and traders are nervous about what would happen if the firm fails. The company holds about 4% of all Bitcoin and is sitting on significant paper losses. Source 6 (Investing.com) noted that Strategy’s funding model faces growing scrutiny.

Analysts remained divided on whether a durable bottom has formed. Scott Melker, as reported by Benzinga, described Bitcoin at a critical technical juncture, noting that if BTC closes at current levels or higher, it would confirm a strong bullish RSI divergence on the daily chart after reaching oversold conditions. He added that Bitcoin has already printed a bullish divergence on the weekly RSI, only the second such occurrence ever.

Walter Bloomberg, by contrast, argued Bitcoin may not have reached its cycle low yet. Despite more than $1.3 trillion being wiped from the market, he expects the final bottom to form in the $50,000–$53,000 range, with the bear market potentially extending into September. Ted Pillows added that Bitcoin has not yet seen the type of capitulation that marked previous cycle bottoms, noting that BTC fell 87% in 2015, 84% in 2018 and 78% in 2022. Based on those historical drawdowns, he expects Bitcoin to decline at least 60%–65% from its cycle peak before establishing a final market bottom.

Bitcoin’s ability to hold the $60,000 level is now the key technical and psychological line the market is defending. Whether it holds depends on the dollar, the Fed, and whether ETF outflows finally slow, as Rio Times noted. The near-flat session and washed-out momentum read as an oversold market pausing at support rather than resuming its slide, but the forces that drove the decline remain in place.