Late Thursday, global markets turned risk-averse, causing bitcoin to drop to its lowest point in weeks and sparking one of Asia’s biggest single-day equity declines this year. The selloff spread across asset classes, currencies, and continents, showing how closely crypto now tracks broader economic trends.
Crypto Slides as Macro Fears Spread
Bitcoin fell to an intraday low of about $58,200 before recovering to around $59,890 by late Thursday, according to The Block. The rebound did little to reassure traders. Over the same period, Ethereum dropped 3.8% to about $1,555, and XRP fell 3.6% to $1.03.
Losses were not limited to digital assets. South Korea’s Kospi index dropped over 8% on Friday morning, triggering a circuit breaker to stop panic selling. Japan’s Nikkei 225 fell almost 5%, and Hong Kong’s Hang Seng lost 2.3%. Presto Research analysts pointed out that bitcoin has been moving closely with equities, feeling the pressure as risk assets fell during Asian trading hours.
Where Bitcoin Goes From $58,000
Traders are now focused on key price levels that could shape bitcoin’s next move. The first test is whether bitcoin can get back above $60,000. If not, attention may shift to the support zone between $54,000 and $56,000, according to CoinEx’s chief analyst. Others are watching if bitcoin can hold the $58,000 to $59,000 range, while also tracking ETF flows and changing expectations for interest rate cuts.
ETF flows have already turned negative. On Thursday, U.S. spot bitcoin ETFs saw $696.3 million in net outflows, their biggest single-day withdrawal since May 27, according to SoSoValue. This marked six straight days of losses. Inflation data added to the worries: the Personal Consumption Expenditures price index rose 4.1% year-over-year in May, and core PCE inflation increased 3.4%. This leaves the possibility open for a Federal Reserve rate hike later this year.
Strategy’s Preferred Stock Adds Pressure
Adding to the volatility, Strategy—a company that holds bitcoin—saw its STRC perpetual preferred stock drop as much as 26% below its $100 par value on Thursday, a record low. The company’s common shares also fell to their lowest levels since February 2024.
Key pressure points traders are tracking:
- ETF outflows have continued for six straight days
- Bitcoin support zone: $58,000–$59,000, with resistance at $60,000
- Strategy’s STRCBitcoin’s support zone is $58,000 to $59,000, with resistance at $60,000y questions
With inflation data, falling Asian equities, and worries about company balance sheets, traders are preparing for more market turbulence until there are clearer signs from the broader economy.
