Bitcoin drops below $60,000 to lowest since October

Bitcoin fell more than 4% on Wednesday to $59,548, its lowest since October 2024. The decline followed a pullback in technology stocks and a fresh wave of outflows from spot Bitcoin ETFs.

This is the third time this year bitcoin has traded below $60,000. The cryptocurrency has been under pressure from the Federal Reserve's inflation focus and the Iran conflict, while fund flows turned decisively negative. Spot Bitcoin ETFs lost $182 million this week, putting them on track for a seventh consecutive week of net withdrawals. Total assets under management in those funds have fallen to $77.5 billion from about $113 billion at year-end 2024.

The broader crypto market slid with bitcoin. Ether and Solana also declined, and the selloff extended across smaller tokens.

The market structure bill known as the CLARITY Act is the most concrete catalyst for a rebound. It has roughly five weeks to clear a key legislative hurdle before Congress' summer recess. If that window closes, the bill will likely be delayed until the fall.

Despite the slide, bitcoin's drawdown has been shallower than in previous bear markets, said Sam Callahan, director of bitcoin strategy and research at OranjeBTC.

Callahan added that the institutional shift has muted the extreme swings that defined earlier crypto winters. The next marker for the sector is the CLARITY Act's progress before the July recess.