Bitcoin retreated toward the $60,000 mark on Tuesday, erasing gains from a brief bounce the previous day, as persistent outflows from U.S. spot bitcoin ETFs and ongoing concerns over interest rates continued to dampen demand. The leading cryptocurrency traded at $61,683, down 2.8% for the session, after oscillating between $60,803 and $63,806.
The $60,000 level has taken on added significance, not only as a psychological barrier but also as a critical technical threshold. According to Reuters market analyst Paul Spirgel, this level gained additional weight after serving as support in February and now sits near the 200-week moving average, a widely followed long-term trend indicator. Spirgel warned that a decisive move lower could open the door to a test of $50,000.
The selling pressure extended beyond bitcoin, with ether falling roughly 1.9% and solana declining 3.0%, signaling a broad-based retreat across the crypto market rather than an isolated move in the largest digital asset.
Exchange-traded fund flows continue to weigh on sentiment. U.S. spot bitcoin ETFs recorded net outflows of $91.4 million on June 8, according to data from Farside Investors. BlackRock's IBIT saw the largest single-day outflow of $232.9 million, while some smaller funds attracted modest inflows, highlighting the uneven demand for these products.
Analysts at Bernstein attributed bitcoin's recent weakness primarily to subdued capital flows rather than fears about quantum computing or other perceived risks. In a note reported by CoinDesk, analysts led by Gautam Chhugani wrote, 'Bitcoin still may offer some diversification from the unusual singular AI driven momentum markets we have experienced this year.'
XM analyst Achilleas Georgolopoulos struck a cautious tone, telling Barron's, 'With risk appetite being positive but not benefiting cryptos, it appears difficult to envisage a scenario in which bitcoin jumps higher that does not involve a significant dollar depreciation.' The dollar slipped on Tuesday, which typically makes dollar-denominated assets more affordable for international buyers, but crypto prices showed little reaction.
Investors are now focused on Wednesday's release of the May Consumer Price Index, scheduled for 8:30 a.m. ET on June 10, which will provide fresh insight into U.S. inflation trends. This data comes ahead of the Federal Reserve's policy meeting on June 16-17. A Reuters poll indicated that most economists expect the Fed to hold its benchmark rate at 3.50%-3.75% through the remainder of the year.
Corporate buying provided only limited support. Strategy acquired 1,550 bitcoin for approximately $101 million, bringing its total holdings to 845,256 BTC, according to a company announcement on Monday. Despite the purchase, Strategy's shares fell 7.7% on Tuesday, reflecting investor caution about financing risks and the broader downturn in bitcoin.
The bearish scenario remains clear: if ETF outflows persist, inflation comes in above expectations, and the dollar remains strong enough to discourage risk-taking, a break below $60,000 could attract new sellers rather than bargain hunters. Conversely, a cooler inflation reading, a slowdown in ETF redemptions, or a more pronounced decline in the dollar could help stabilize bitcoin and prompt short covering. However, Tuesday's price action offered little evidence that the market is ready to form a bottom.
