Bitcoin has plummeted to October 2024 lows: analysis of causes and prospects
The bitcoin price on Wednesday, June 24, collapsed to $59,023.98, updating a local low not seen since October 10, 2024. At the time of writing this analysis, the asset had partially recovered to $61,469, but the overall picture remains alarming. The drop below the psychological level of $60,000 occurred for the third time in the past year, and the correction depth from the all-time high of $126,080 recorded in October 2025 was about 52%.
Pressure from ETFs and the Technology Sector
The key catalyst for the current downturn was a massive capital outflow from spot bitcoin ETFs. Over the past week, investors withdrew $182 million, with negative dynamics observed for the seventh consecutive week. The total assets under management of the funds shrank to $77.5 billion, compared to nearly $113 billion at the end of 2025. The constant closing of positions creates automatic pressure on the market: fund issuers are forced to sell physical bitcoin on the open market, increasing supply amid extremely weak demand.
An additional pressure factor was the decline in the technology stock sector. Investors massively rebalanced their portfolios ahead of Micron Technology's earnings report, and throughout 2026, there has been a clear shift in interest from cryptocurrencies to AI company stocks, initial public offerings, and prediction platforms. This has significantly reduced liquidity in the cryptocurrency sector.
Regulatory Uncertainty and Institutional Support
An important negative factor remains the uncertainty in the US legal framework. 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 review until autumn will deprive the industry of a powerful growth driver during a key period.
Notably, the current downturn is not as severe as previous prolonged bearish periods. The expansion of the circle of institutional investors mitigates sharp price fluctuations. As OranjeBTC's Director of Strategy and Research rightly notes, bitcoin's volatility has decreased compared to past bear phases due to increased liquidity and a reduced share of small retail participants in the holder structure.
Expert Opinion
From my point of view, the current situation is not a classic bear market, but rather a prolonged consolidation phase awaiting a catalyst. Holding the support zone formed by major players will depend on the traditional financial sector's reaction to corporate reports from technology giants. To change the trend, signals from analysts about reaching the market bottom need to translate into real buying volumes. For now, the market remains in a wait-and-see mode, and the key level for bitcoin is the psychological mark of $60,000.