Bitcoin briefly dips below $59,000 as macro pressures drag crypto, Asian equities lower

Bitcoin (BTC) fell below $59,000 late Thursday in a broad crypto sell-off driven by macro risk-off sentiment, analysts said.

The world's largest cryptocurrency briefly dropped to a low of around $58,200 earlier in the day before rebounding to $59,890 as of 11:50 p.m. Thursday. Ethereum (ETH) slid 3.8% over the past 24 hours to $1,555, while XRP lost 3.6% to trade at $1.03.

Asian equities also fell sharply on Friday morning. South Korea's Kospi declined over 8%, triggering a circuit breaker. Japan's Nikkei 225 Index dropped 4.9%, while Hong Kong's Hang Seng Index slid 2.3%. 

Min Jung, research associate of Presto Research, told The Block that bitcoin is trading in lockstep with equities, coming under pressure during the Asia session as broader risk assets sold off.

"From here, the key question is whether BTC can reclaim $60,000 quickly. If $60,000 turns into resistance, traders will likely focus on the $54,000-$56,000 structural support zone,"said Jeff Ko, chief analyst of CoinEx.

Andri Fauzan Adziima, research lead at Bitrue Research Institute, shared similar views, noting that traders are watching whether BTC holds key support around the $58,000-$59,000 level, along with signs of ETF flow reversal and how the macro narrative shifts on future rate cut expectations. "Volatility stays elevated until we get clearer catalysts," he added.

Meanwhile, U.S. spot bitcoin ETFs saw $696.3 million in net outflows on Thursday, marking their largest daily outflow since May 27 and extending their outflow streak to six straight days, according to SoSoValue data.

"Focus also remains on spot ETF flows, derivatives positioning, and the July 2 U.S. jobless claims report," said Dominick John, analyst of Zeus Research.

The U.S. Personal Consumption Expenditures price index increased 4.1% year-on-year in May, while the core PCE inflation advanced 3.4% year-on-year, keeping the possibility of a Federal Reserve interest rate hike this year on the table, according to Reuters.

Strategy's STRC concerns

Jung of Presto also pointed out that concerns surrounding Strategy's STRC add another layer of uncertainty.

Strategy's STRC perpetual preferred stock fell to a record low Thursday, dropping as much as 26% below its $100 par value. The company's common shares also hit their lowest level since February 2024 as bitcoin declined.

"Traders are closely watching how the Strategy situation evolves, alongside broader macro risk sentiment," Jung added.

Ko of CoinEx also said Strategy remains a source of anxiety, raising questions about payout sustainability and the durability of its model.