Bitcoin Plunges Below $60,000 Amid Supply-Side Pressure and Weak Demand

Bitcoin's price plummeted below $60,000 in the past 24 hours, marking a 3% decline and a 16% drop over the month. The cryptocurrency has struggled to maintain support at this level, which was once seen as a key benchmark.

The downturn is attributed to a pronounced weakness on the demand side, particularly in the North American market, where Bitcoin's cumulative return during U.S. trading hours has posted a 15% decline over the past month.

A significant factor contributing to this decline is the $6.35 billion in net redemptions from compliant ETF channels over the past 30 days, marking the highest level in this statistical period. This indicates that the core demand channel, once tasked with absorbing market selling pressure, is steadily losing momentum.

Supply-side pressure also played a role in the breakdown below $60,000, with roughly 7,600 BTC being moved into major exchanges during the panic sell-off, representing nearly $480 million in potential selling pressure. The centralized liquidation of leveraged positions further amplified the magnitude of the decline.