Bitcoin fell below $59,000 late Thursday as macro risk-off sentiment triggered a broad crypto sell-off, with the world's largest cryptocurrency briefly dropping to around $58,200 before rebounding to $59,890 as of 11:50 p.m. Thursday. The decline was driven by broader market pressure, with Asian equities falling sharply on Friday morning — South Korea's Kospi declined over 8%, triggering a circuit breaker, while Japan's Nikkei 225 dropped 4.9% and Hong Kong's Hang Seng slid 2.3%. Analysts noted bitcoin is trading in lockstep with equities during the Asia session, with traders now watching whether BTC can reclaim $60,000 or face further downside toward the $54,000-$56,000 support zone.
Bitcoin Drops to $58,200 Before Rebounding to $59,890
Bitcoin briefly dropped to a low of around $58,200 earlier in the day before rebounding to $59,890 as of 11:50 p.m. Thursday, according to The Block's price page. Ethereum slid 3.8% over the past 24 hours to $1,555, while XRP lost 3.6% to trade at $1.03.
Asian Equities Fall Sharply on Friday Morning
Asian equities fell sharply on Friday morning. South Korea's Kospi declined over 8%, triggering a circuit breaker. Japan's Nikkei 225 Index dropped 4.9%, while Hong Kong's Hang Seng Index slid 2.3%. Min Jung, research associate of Presto Research, told The Block that bitcoin is trading in lockstep with equities, coming under pressure during the Asia session as broader risk assets sold off.
Analysts Identify $60,000 as Key Resistance Level
Jeff Ko, chief analyst of CoinEx, said the key question is whether BTC can reclaim $60,000 quickly. "If $60,000 turns into resistance, traders will likely focus on the $54,000-$56,000 structural support zone," Ko stated. Andri Fauzan Adziima, research lead at Bitrue Research Institute, noted that traders are watching whether BTC holds key support around the $58,000-$59,000 level, along with signs of ETF flow reversal and how the macro narrative shifts on future rate cut expectations. "Volatility stays elevated until we get clearer catalysts," Adziima added.
U.S. Bitcoin ETFs Record $696.3 Million Net Outflows Thursday
U.S. spot bitcoin ETFs saw $696.3 million in net outflows on Thursday, marking their largest daily outflow since May 27 and extending their outflow streak to six straight days, according to SoSoValue data. Dominick John, analyst of Zeus Research, said focus remains on spot ETF flows, derivatives positioning, and the July 2 U.S. jobless claims report.
The U.S. Personal Consumption Expenditures price index increased 4.1% year-on-year in May, while the core PCE inflation advanced 3.4% year-on-year, keeping the possibility of a Federal Reserve interest rate hike this year on the table, according to Reuters.
Strategy's STRC Falls 26% Below Par Value
Jung of Presto pointed out that concerns surrounding Strategy's STRC add another layer of uncertainty. Strategy's STRC perpetual preferred stock fell to a record low Thursday, dropping as much as 26% below its $100 par value. The company's common shares also hit their lowest level since February 2024 as bitcoin declined. "Traders are closely watching how the Strategy situation evolves, alongside broader macro risk sentiment," Jung added. Ko of CoinEx said Strategy remains a source of anxiety, raising questions about payout sustainability and the durability of its model.
FAQ
What caused bitcoin to fall below $59,000 on Thursday?
Bitcoin fell below $59,000 late Thursday due to macro risk-off sentiment that triggered a broad crypto sell-off. Analysts noted bitcoin is trading in lockstep with equities, coming under pressure during the Asia session as broader risk assets sold off.
How much did U.S. spot bitcoin ETFs lose on Thursday?
U.S. spot bitcoin ETFs saw $696.3 million in net outflows on Thursday, marking their largest daily outflow since May 27 and extending their outflow streak to six straight days, according to SoSoValue data.
What is the key support level analysts are watching for bitcoin?
Jeff Ko, chief analyst of CoinEx, stated that if $60,000 turns into resistance, traders will likely focus on the $54,000-$56,000 structural support zone. Andri Fauzan Adziima, research lead at Bitrue Research Institute, noted traders are watching whether BTC holds key support around the $58,000-$59,000 level.
