Bitcoin briefly fell below the crucial threshold of $60,000 on Binance on June 5. This was the first time since October 2024 that the largest crypto dipped under that level.
This dip was triggered by a broader risk-off sell-off across the financial markets. Investors reacted to strong employment numbers from the US, ongoing fund outflows, and growing concerns about liquidity.
Bitcoin dropped on Friday to below $60,000. This broke a psychological support level that had held since 2026.
The dip brought BTC down to a low of $59,750 on Coinbase and $59,799 on Binance against the U.S. dollar (USD). Against USDT, Bitcoin hit a low of $59,786 on Binance at the time of writing.
This is the first confirmed drop below $60,000 since October 10, 2024, when BTC briefly touched $58,863 before recovering.
The drop brought Bitcoin into a key technical zone that traders have been eyeing for months. This sparks debate: are we experiencing just a temporary panic reaction or is there a deeper correction at play?
This latest drop follows a tough period for digital assets. Bitcoin has fallen more than 17% in the past week, and the broader crypto market is under pressure from a significant sell-off.
Market participants cite a mix of macroeconomic and crypto-specific factors as the causes of the drop.
A stronger than expected U.S. jobs report has diminished the outlook for rapid rate cuts, causing investors to steer clear of risk assets like crypto.
Billions are leaving crypto investment products.
Recent data from CoinShares shows the scale of the retreat. The asset manager reports that digital asset investment products saw about $5.8 billion in outflows over the past four weeks.
The market mood has flipped sharply. Digital asset investment products have faced US$5.8B in outflows over the last four weeks, influenced by geopolitics, shifting rates, and AI pulling liquidity elsewhere. But this feels more like a sentiment shock than a structural break. More in… pic.twitter.com/fldgPXfmFl
— CoinShares (@CoinSharesCo) June 5, 2026
According to CoinShares, these outflows were driven by geopolitical uncertainty, changing rate expectations, and capital shifting towards AI investments.
"Sentiment has clearly worsened over the past month... the asset class is nearly at zero this year. This is a sentiment shock," said CoinShares, adding that the current situation seems primarily driven by sentiment rather than a structural weakness in crypto fundamentals.
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Traders are watching to see if $60,000 becomes a resistance level now.
The temporary drop of Bitcoin below $60,000 is particularly significant, as this level has consistently been a crucial psychological point in this market cycle.
In previous tests in February 2026, the price consistently remained above this level, providing stability.
Analysts are now watching to see if Bitcoin can quickly regain this level or if it will turn into a resistance level heading into the weekend.
What's next for Bitcoin?
The focus is likely to remain on macroeconomic figures, expectations surrounding the Federal Reserve, and the inflow or outflow of institutional capital.
Investors are also keeping an eye on whether digital asset investment products continue to see outflows or if new capital starts flowing in.
The brief drop of Bitcoin below $60,000 is one of the key events of 2026 and puts the critical support level back in focus as traders ponder the next phase of this cycle.