Bitcoin has fallen to October 2024 lows: reasons for the crash and scenarios
The Bitcoin price during the trading session on June 24 updated its local low, dropping to $59,023.98. This is the lowest level since October 10, 2024. The market is under pressure from several factors simultaneously: a crash in the technology sector of the stock market and the continued outflow of funds from spot Bitcoin ETFs. This combination has intensified the correction, which has been ongoing for eight months. At the time of writing this review, the price has bounced back to $61,469.
Over the past year, the price of digital gold has broken through the psychological level of $60,000 to the downside for the third time. Since the all-time high recorded in October 2025 at $126,080, the total depth of the decline is about 52%. This is not just a correction—it is a full-fledged bearish trend that calls bullish scenarios into question.
ETF outflows continue to pressure the market
Last week, investors withdrew $182 million from spot Bitcoin ETFs. Negative dynamics have been observed for the seventh consecutive week. The total assets under management of the funds have decreased to $77.5 billion, although at the end of 2025 this figure was nearly $113 billion. This significant decline indicates that institutional money is leaving, not arriving.
Regular position closures create automatic pressure on the asset's market value. When retail and large investors withdraw funds, fund issuers are forced to promptly sell physical cryptocurrency on the open market. In conditions of extremely weak demand from large funds, this increases exchange supply and pushes the price down.
Capital rotation and regulatory pause
During the trading session on Wednesday, investors were massively rebalancing their portfolios ahead of Micron Technology's financial report. Throughout 2026, there has been a clear shift in interest from cryptocurrencies towards stocks of AI companies, initial public offerings, and prediction platforms. As a result of this process, the liquidity of the cryptocurrency sector has significantly decreased.
An additional negative factor is the uncertainty in the US legal landscape. An important procedural vote on the CLARITY Act bill, which is supposed to lay the foundation for crypto regulation, is expected within the next five weeks before Congress goes on recess. Postponing the consideration until autumn will deprive the industry of a powerful growth driver during a key period.
Institutional support and reduced volatility
The latest downturn is not as severe as past prolonged bear market periods. Sam Callahan, Director of Strategy and Research at OranjeBTC, notes that the expansion of the institutional investor base dampens sharp fluctuations both on the upside and during price declines. It is often said that this is the worst bull market and the best bear market. In reality, it means that Bitcoin's volatility has decreased compared to previous bear phases. The reason is that the investor base has grown, liquidity has increased, and the holder structure now includes fewer small retail participants.
Whether the support zone formed by large players holds depends on the reaction of the traditional financial sector to corporate reports from tech giants. Additionally, for a trend reversal, signals from analysts about reaching a market bottom need to translate into real buying volumes.
My analysis: The current situation is a classic "accumulation phase" in a bear market, which could drag on until clear regulatory signals emerge. The $59,000 level is a critical zone. A break below it would open the path to $50,000, but if institutions start actively buying the dip, we could see a sharp V-shaped rebound.