Bitcoin Faces Pressure Near $60,000 as Oil, Inflation, and ETF Outflows Shift Fed Expectations
Bitcoin came under renewed pressure as traders weighed rising oil prices, accelerating producer inflation, and signs of weakening institutional demand, raising concerns that support near $60,000 could be tested. According to Cointelegraph, the Nasdaq 100 Index dropped 7.5% in the seven days leading up to June 10, wiping out $2.7 trillion in market value and putting broader risk sentiment under strain as inflation concerns intensified alongside higher energy costs.
The ongoing war in Iran pushed Brent crude oil prices above $90, fueling fears of an economic slowdown and prompting markets to price in tighter US Federal Reserve policy for longer than previously expected. The US Labor Department reported Thursday that its producer price index jumped 6.5% from May 2025, the highest level since 2022. In response, traders began anticipating 40% odds of an interest rate increase by the US Fed by September, up from 5% one month earlier, based on the CME FedWatch Tool. Against this backdrop, Bitcoin two-month futures traded below the 4% neutral premium relative to spot markets on Thursday, signaling subdued demand for bullish leverage.
Equity-market dynamics also remained in focus, with the upcoming $75 billion SpaceX (SPCX US) IPO reported as oversubscribed by more than 2x, suggesting investors were still willing to back technology growth despite recent volatility. Cointelegraph noted that AI infrastructure companies were seeking significant funding for build-outs, contributing to negative market reactions, as Google (GOOG US) announced plans to raise $80 billion, while Oracle (ORCL US) and Super Micro Computer (SMCI US) followed with $40 billion and $7 billion, respectively. The Friday debut of SpaceX shares was described as likely to influence sentiment around upcoming IPOs. The report also said it appeared premature to label the AI sector a bubble after SpaceX marked the largest IPO in history at a $1.77 trillion valuation. Separately, US markets reacted positively after U.S. President Donald Trump called off planned strikes on Iran, citing renewed negotiations to reopen the Strait of Hormuz.
Bitcoin’s decline also coincided with Strategy (MSTR US) temporarily halting its Bitcoin accumulation to reduce convertible debt, while its cash position fell to seven months of dividend coverage and its preferred variable Stretch (STRC US) shares moved away from the $100 level that would enable further equity issuance. Meanwhile, $1.9 billion in outflows from US-listed spot Bitcoin ETFs in June added to bearish sentiment, as the flows are widely viewed as a proxy for institutional demand. Cointelegraph said Bitcoin was currently struggling to function as a hedge against a stock market sell-off, and that the possibility of a further correction below $60,000 should not be ruled out.
