TL;DR - Bitcoin broke below $60,000 for the first time since October 2024. Down 53% from its all-time high. May jobs data crushed expectations, killing any remaining hope for rate cuts. $1.1 billion liquidated in 24 hours. Here's what happened and what comes next.
Bitcoin Below $60,000
Bitcoin opened June 5 at $63,812 and fell to $59,800 by mid-morning - the first time BTC has traded below $60K since October 2024. The move wiped out nearly every gain from the post-ETF rally that defined late 2024 and early 2025.
The immediate trigger: May nonfarm payrolls came in significantly above expectations, confirming the economy is running too hot for the Fed to cut rates anytime in 2026. The dollar strengthened, Treasury yields pushed higher, and risk assets sold off across the board.
This is now a 53% drawdown from the October $128,198 all-time high. For context, the 2022 bear market bottomed at a 77% drawdown. We're not there yet, but the speed of this decline - 20% in a single week - has shaken even long-term holders.
What Happened Today
May Jobs Report: Nonfarm payrolls significantly exceeded market expectations. The labor market remains hot, which means inflation stays sticky, which means the Fed stays on hold. CME FedWatch now shows 98%+ probability of no rate change at the June 17 meeting. Zero cuts priced for 2026.
Liquidations: Over $1.1 billion in leveraged positions were liquidated in the past 24 hours. The bulk of these were long positions - traders betting on a bounce that never came.
ETF outflows continue: The 12-day outflow streak extended further. Institutional capital is still leaving the building.
Hezbollah rejected Israel's ceasefire offer, adding another layer of geopolitical risk to already fragile markets.
The Bigger Picture
This selloff isn't about one data point. It's five forces hitting simultaneously:
- AI capital rotation - SpaceX IPO at $2T, AI stocks up 50% YTD, money leaving crypto for tech
- Iran-Hormuz geopolitical crisis - strikes on Kuwait, Bahrain, Strait of Hormuz under threat
- Bond yields at 19-year highs - 30Y at 5.16%, risk-free rate competing with BTC
- Hot jobs data - kills rate cut hopes, strengthens dollar
- Strategy's first BTC sale since 2022 + Mt. Gox moving $739M
But the infrastructure underneath keeps building. CFTC approved perps. OCC granted 5 bank charters. Paxos got SEC clearing approval. 198 companies hold BTC. The price is crashing. The infrastructure isn't.
Key Levels to Watch
$58,000-$60,000 - Current battle zone. A sustained break below $58K opens the door to $52K-$54K.
$52,000-$54,000 - The 2024 pre-ETF accumulation zone. Major support if we get there.
$65,000 - Resistance overhead now. Bulls need to reclaim this to change the narrative.
June 11 CPI - The next major catalyst. A hot print could send BTC to new lows. A cooling print could spark the first relief rally in weeks.
June 17 FOMC - First meeting under Chair Warsh. The dot plot and press conference matter more than the rate decision (which is already priced).
NOT INVESTMENT ADVICE. This article discusses Bitcoin price action and market conditions. Nothing in this piece constitutes a recommendation to buy or sell any asset. All investments carry substantial risk of loss. Do your own research.
Related: Bitcoin Weekly Recap | Economic Data Driving Bitcoin | Why Smart Money Is Positioning Now | Compare ETFs | Compare Lenders
Sean Ristau | @SeanRistau | 21Rates / The Daily Stack
