Bitcoin Falls Below $60K — Traders Brace for What Comes Next 

Bitcoin (BTC) briefly sank below $60,000 on Wednesday for the first time this year as nearly $1 billion in leveraged crypto positions were wiped out, deepening a selloff driven by ETF outflows and macroeconomic pressure. 

BTC later rebounded to around $61,600 after stronger-than-expected earnings from AI firms boosted risk appetite across technology markets.

Bitcoin's break below $60,000 triggered a surge in exchange deposits.

Average monthly Bitcoin deposits to Binance have nearly doubled since April, rising from 3,880 BTC to 7,600 BTC, according to CryptoQuant analyst Darkfost. At current prices, that represents roughly $479 million in potential sell-side supply.

CryptoQuant views $60,000 as a critical battleground between nervous sellers and long-term buyers accumulating at lower prices. 

While exchange inflows remain elevated, recent data suggests the pace of deposits is beginning to slow — a potential sign that selling pressure may be starting to fade.

Bitcoin has lost roughly 10% since Monday's peak near $65,500, pulled lower by a hawkish Federal Reserve, six straight weeks of ETF outflows, thinning summer liquidity, and a quarter-end options expiry on June 30 that traders say is keeping the market unstable.

Glassnode said Bitcoin's drop below $60,000 reflected mounting realized losses, persistent ETF outflows, and defensive options positioning, with broad demand still lacking despite selective accumulation.

The move follows a pattern seen throughout the current bear market, where sharp declines below key psychological levels trigger increased exchange deposits from investors looking to sell. 

Similar spikes occurred during Bitcoin's drops to $84,000 in November 2025 and $60,000 in February 2026.

Bitcoin's rebound coincided with a broader rally in risk assets after Micron Technology posted stronger-than-expected earnings, reinforcing investor optimism around AI-driven growth and lifting semiconductor stocks worldwide.

Traders are now focused on Thursday's PCE inflation report, the Federal Reserve's preferred measure of inflation, for clues about the path of interest rates. A hotter-than-expected reading could add pressure to risk assets, including Bitcoin.

Meanwhile, data from CoinGlass shows approximately $1.6 billion in leveraged long positions clustered below the $58,000 level, potentially creating additional downside risk if selling resumes.

Investor and trader Ted Pillows suggested Bitcoin could revisit the $50,000 region, arguing that previous market cycles saw BTC trade significantly below its 200-week moving average before establishing a major bottom.

The break below $60,000 highlights how fragile crypto market sentiment remains despite months of institutional adoption and ETF launches. If buyers fail to defend the level, traders warn the selloff could accelerate toward the mid-$50,000 range as leveraged positions unwind.

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