Bitcoin has fallen to October 2024 lows: a fundamental analysis of the crisis
On Wednesday, June 24, the price of the leading cryptocurrency crashed to $59,023.98 — a local low not seen since October 10, 2024. Since the all-time high of $126,080 recorded in October 2025, the correction depth has been approximately 52%. At the time of writing this review, the price has partially recovered to $61,469, but the overall market sentiment remains extremely bearish.
The current drop is the third time in the past year that Bitcoin has fallen below the psychological mark of $60,000. And each time, the market finds new reasons to sell.
ETF Bleeding: Seventh Consecutive Week of Outflows
The key driver of the downward movement has been an unprecedented capital outflow from spot Bitcoin ETFs. Over the past week, investors withdrew $182 million. This marks the seventh consecutive week of negative dynamics. The total assets under management of the funds have shrunk to $77.5 billion, compared to nearly $113 billion at the end of 2025.
The mechanics are simple: when retail and institutional investors close positions, fund issuers are forced to sell physical Bitcoin on the open market. Amid extremely weak demand from large funds, this creates excess supply that pressures the price.
Capital Rotation and Regulatory Pause
We are witnessing a clear shift in institutional investor interest from cryptocurrencies to shares of technology giants, especially in the artificial intelligence sector. Wednesday's trading session took place against the backdrop of massive portfolio rebalancing ahead of Micron Technology's earnings report. Liquidity in the cryptocurrency sector has significantly decreased.
An additional negative factor is the uncertainty in the US legal landscape. A vote on the CLARITY Act, which is intended to lay the foundation for crypto regulation, is expected within the next five weeks before Congress goes on recess. Postponing the consideration until autumn would deprive the industry of a powerful growth driver during a key period.
Institutional Support: The Paradox of Declining Volatility
This downturn feels different from previous prolonged bearish periods. As analysts rightly note, the expansion of the circle of institutional investors smooths out sharp fluctuations both upward and downward. Bitcoin's volatility has decreased compared to past bear phases precisely because the structure of holders now includes fewer small retail participants.
My professional view: The current situation is not a classic bear market, but rather a prolonged consolidation with a downward bias. The resilience of the support zone formed by large players will depend on the reaction of the traditional financial sector to corporate earnings reports from technology giants. To change the trend, signals from analysts about reaching a market bottom need to translate into real buying volumes. Until that happens, Bitcoin risks testing the $55,000 zone.