TLDR
- Bitcoin climbed back above $60,000 on July 1, 2026, gaining over 3.7% on the day
- Fed Chair Kevin Warsh said inflation risks have come down and reaffirmed the 2% target
- Bitcoin hit a 22-month low of $57,803 earlier in the same session
- Spot Bitcoin ETFs saw record monthly outflows of $4.5 billion in June
- BTC is down 32% year-to-date and more than 50% below its October record high
Bitcoin recovered above $60,000 on Wednesday, July 1, after Federal Reserve Chair Kevin Warsh said inflation risks had eased. The comments gave markets a brief lift following a bruising quarter for crypto.
BTC briefly touched a 22-month low of $57,803 earlier in the session before bouncing back. By late afternoon ET, Bitcoin was trading at around $60,807, up roughly 3.7% on the day.
Analyst Daan Crypto Trades flagged the move on social media, noting that Bitcoin had tapped its 0.618 Fibonacci retracement from the entire bull market cycle. He said the level had “some confluence with the lows from the Summer 2024 consolidation” and that previous cycles had seen relief bounces around similar areas. He added he was “slowly accumulating spot” but not deploying all his capital at once, given how different this cycle has been from previous ones.
$BTC Has tapped its .618 Fibonacci retracement from the entire bull market cycle. This level has some confluence with the lows from the Summer 2024 consolidation.
Previous cycles often saw some relief in the form of a wick around similar area’s. But we do know this cycle has… pic.twitter.com/eNPa2ZbA3z
— Daan Crypto Trades (@DaanCrypto) July 1, 2026
Separately, analyst Ted Pillows noted that as long as Bitcoin stays below $60,000, sellers remain in control.
$BTC hit a new yearly low.
As long as Bitcoin stays below $60,000, sellers are in control. pic.twitter.com/i59mAJdfQ0
— Ted (@TedPillows) July 1, 2026
Speaking at the European Central Bank’s annual forum in Sintra, Portugal, Warsh said the Fed would not be comfortable with inflation above its 2% target. “We’re going to deliver price stability in the U.S.,” he said. He declined to give forward guidance on the next rate decision.
Bitcoin’s Worst Quarter in Years
Bitcoin ended the June quarter down 14%, bringing its year-to-date loss to 32%. It is now trading more than 50% below the record high it hit in October.
The Fed’s hawkish tone at its June meeting raised expectations of at least one more rate hike this year. Higher rates increase the opportunity cost of holding non-yielding assets like Bitcoin.
Demand for AI-linked stocks has also pulled investors away from crypto. Institutional selling in spot Bitcoin ETFs has continued, with outflows stretching across seven straight weeks heading into what could be an eighth.
Record ETF Outflows in June
U.S. spot Bitcoin ETFs recorded their largest monthly outflows since launching in January 2024, with $4.5 billion leaving in June alone, according to SoSoValue data.
That topped the previous monthly outflow record of $3.48 billion set in February 2025 by around 29%.
BlackRock’s iShares Bitcoin Trust accounted for $3.55 billion of June’s total outflows.
Total net assets across U.S. spot Bitcoin ETFs have dropped to around $70.9 billion, down from peaks above $110 billion earlier this year.
Despite the recent selling, cumulative net inflows since the ETFs launched remain positive at over $51 billion.
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