Bitcoin Price Plummets Below $60,000 Amid ETF Outflows and Rising Inflation

Bitcoin's price has been in free fall since hitting an all-time high of $80,000 just over a month ago. The cryptocurrency briefly dipped below $60,000 on June 5, its lowest level since March 2024.

The sudden downturn is attributed to sustained outflows from spot Bitcoin exchange-traded funds (ETFs) totaling around $4.4 billion in net outflows over the past few weeks. This has brought year-to-date flows negative and halted the fund-fueled rally.

A deteriorating macro backdrop, particularly rising U.S. consumer price inflation, is driving the hasty exit from Bitcoin. The May reading saw headline inflation accelerate to 4.2%, marking a third straight monthly gain and the hottest print since April 2023.

Top crypto research firms are split on whether the cycle bottom has been reached. Standard Chartered's head of digital assets research, Geoffrey Kendrick, believes the cycle bottom is already in at around $59,000, citing easing geopolitical tensions and resilient institutional demand. In contrast, Galaxy Digital projects a base-case bottom between $40,000 and $46,000, with a deeper capitulation event potentially dragging prices as low as $30,000 to $37,000.

Analysts frame the outlook through three scenario-based ranges, but warn that pinning down a precise year-end price target is not feasible due to the high level of uncertainty surrounding geopolitics, inflation, and Federal Reserve policy.