Bitcoin has plunged to October 2024 lows: analysis of causes and prospects
On June 24, the Bitcoin price broke through the psychological mark of $60,000, dropping to $59,023.98 — its lowest level since October 2024. At the time of writing this analysis, the asset has partially recovered to $61,469, but the overall picture remains alarming. Since the all-time high of $126,080 (October 2025), the correction depth has been about 52%, and this is the third time this year that the price has fallen below the key level.
ETF Pressure: Seventh Consecutive Week of Outflows
The main catalyst for the current decline is the sustained capital outflow from spot Bitcoin ETFs. Over the past week, investors withdrew $182 million, and the negative trend has continued for the seventh consecutive week. The total assets under management of the funds have shrunk to $77.5 billion, although at the end of 2025, this figure exceeded $113 billion.
The pressure mechanism is 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 major players, this creates excess supply, which pushes the price down.
Capital Rotation and Regulatory Pause
2026 shows a clear shift in investor interest from cryptocurrencies to stocks of tech giants, especially in the field of artificial intelligence, as well as to initial public offerings and prediction platforms. The liquidity of the crypto sector has significantly decreased, making the market more vulnerable to any negative news.
An additional negative factor is the uncertainty in the US legal landscape. A vote on the CLARITY Act, which is supposed to lay the foundation for crypto regulation, is expected within the next five weeks. Postponing the review until autumn will deprive the industry of a powerful growth driver during a key period.
Institutional Support: Less Volatility, But Also Less Hope
Paradoxically, the current downturn feels less painful than previous bear phases. As noted by Sam Callahan, Director of Strategy and Research at OranjeBTC, the expansion of the circle of institutional investors smooths out sharp fluctuations both up and down. However, this also means that real purchase volumes are needed to change the trend, not just signals from analysts.
My analysis: As long as the outflow from ETFs does not stop and regulatory clarity does not emerge, Bitcoin will remain in the risk zone. The key support level is $57,000–$58,000. If it is broken, the next stop is $50,000. Investors should prepare for a prolonged consolidation rather than a quick reversal.