The price of Bitcoin, the leading cryptocurrency, has fallen below $60,000 (approximately 91,840,000 won) for the first time in 20 months. This decline is attributed to concerns over potential interest rate hikes by the U.S. Federal Reserve, outflows from Bitcoin exchange-traded funds (ETFs), and the burden of large options expirations, which have led to the breach of key support levels. Analysts warn that if a short-term rebound fails to materialize, the downward trend could deepen due to ongoing liquidity concerns.
According to Coinbase and other sources, Bitcoin briefly dropped to the $59,000 range (about 90,310,000 won) on the morning of June 25, marking a decline of over 5% from the previous day. This is the first time Bitcoin has fallen below $60,000 since October 2024.
Compared to its all-time high of approximately $126,000 (about 192,860,000 won) recorded in October 2025, Bitcoin has lost more than half of its value. It has also seen a decline of over 30% this year, continuing its poor performance among risk assets.
The primary concern is interest rates. As the likelihood of rate hikes by the Federal Reserve increases, volatile cryptocurrencies like Bitcoin often face selling pressure. Additionally, high U.S. Treasury yields negatively impact Bitcoin, which does not generate income.
Supply and demand dynamics have also weakened. Bloomberg reports that approximately $3 billion (about 4.59 trillion won) has flowed out of U.S.-listed Bitcoin funds so far in June. This outflow has diminished the buying power that supported Bitcoin's price during last year's rally.
In the short term, the expiration of large options contracts poses a variable. On expiration days, existing buy and sell contracts are settled simultaneously, which can lead to significant price fluctuations. Adam Hims, head of asset management at Tesseract Group, noted, "This volatility may be a temporary shake-up rather than a long-term trend change," suggesting that the actual market direction will become clearer in the first week of July.
Investor interest has also shifted towards artificial intelligence (AI) stocks, contributing to Bitcoin's decline. Recently, sectors such as semiconductors, AI infrastructure, and major tech stocks have shown strength, while cryptocurrencies have failed to exhibit a notable recovery even as the stock market rebounds.
Griffin Ardon, co-founder of Primal Fund, stated, "Long-term investors are increasingly bearish on Bitcoin." He explained that investors are reflecting liquidity reduction in their pricing based on the Fed's hawkish statements and high U.S. Treasury yields. Ardon added, "In an environment of reduced liquidity, Bitcoin generally does not perform well." If Bitcoin does not quickly recover the $60,000 level, the combination of fund outflows and interest rate pressures could lead to further selling pressure after the options expiration.
* This article has been translated by AI.
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