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An image of Bitcoin. / Reuters, Yonhap

Bitcoin prices have plunged below the $60,000 mark, with the bearish trend intensifying. As uncertainty over U.S. monetary policy, capital outflows from spot Bitcoin exchange-traded funds (ETFs), and dampened investor sentiment for risky assets overlap, downward pressure has mounted. Analysts in the market suggest that due to a lack of clear upward momentum, the possibility of further corrections must be left open.

According to the U.S. cryptocurrency exchange Coinbase on the 26th, Bitcoin is trading at $59,853, down 1.48% from the previous day. At the same time, altcoins also showed a downward trend, with Ethereum falling an additional 4.01% within a single day to $1,550 and XRP dropping 3.85% to $1.03.

This decline is analyzed to be driven more heavily by shifts in the macroeconomic environment rather than mere profit-taking. As recent U.S. inflation metrics remained higher than expected, forecasts that the Federal Reserve (Fed) will sustain its tightening stance longer than anticipated have gained traction. Consequently, the dollar has continued to strengthen, driving selling pressure into risky assets overall, including Bitcoin.

Capital outflows are also persisting from U.S. spot Bitcoin ETFs. Evaluated as a factor amplifying downward price pressure, the institutional buying interest that drove Bitcoin's rally early this year has weakened. The market views this as a vicious cycle where slowing ETF inflows lead to deteriorating institutional investor sentiment.

The recent shift in risk appetite toward AI-related tech stocks has also acted as a burden on Bitcoin prices. Because U.S. semiconductor and AI firms continue to maintain relative strength, investment capital is migrating from the cryptocurrency market into the equities market.

Market participants are not ruling out the possibility of further short-term declines. Projections are being raised that because the $60,000 threshold has collapsed, technical selling volumes could increase, and if net ETF outflows persist, an additional correction down to the $57,000 to $58,000 range is possible.

Geoff Kendrick, head of digital assets research at Standard Chartered, anticipated, "Bitcoin's short-term movement will heavily depend on macroeconomics and whether institutional capital inflows return," adding, "If ETF funds do not recover, volatility is highly likely to continue for the time being."

Matt Hougan, chief investment officer (CIO) at Bitwise, analyzed, "In the short term, interest rates and the liquidity environment pose a burden, but the long-term trend of institutions adopting digital assets remains intact," adding, "The current market can be viewed as a correction phase within a long-term upward cycle."

                                                                                                              Kim Min-ju