Bitcoin Retests $58K as Options Expiry, ETF Outflows, and Invesco Filing Dominate

Bitcoin fell to a 2026 low overnight, briefly retesting the $58,000 level before clawing back above $60,000, as a cascade of selling pressure hit markets ahead of a massive derivatives settlement. The trigger was a hotter-than-expected U.S. Personal Consumption Expenditures report, which raised the likelihood of prolonged Federal Reserve rate tightening and sent capital fleeing from risk assets. Within 30 minutes of the stock market opening Wednesday, over $1 billion in leveraged crypto positions were liquidated in a single session, with Bitcoin dropping 5% and Ethereum slipping to the low $1,500s.

Making the damage worse, spot Bitcoin ETFs have now recorded more than $3 billion in outflows over June, including $469 million in a single 24-hour period. The Fear and Greed Index fell to 13 out of 100, its lowest reading of the week, reflecting deeply bearish sentiment. Today's expiry of $10.6 billion in Bitcoin options contracts on Deribit and CME is being watched closely, though analysts note that roughly 80% of those contracts are already out of the money following June's steep decline, meaning settlement could actually relieve some selling pressure.

Invesco Files Tokenized Reserve Fund as Stablecoin Race Accelerates

While spot markets bled, Wall Street kept building. Invesco, which manages more than $2.5 trillion in assets, filed with the SEC to launch the Invesco Stablecoin Reserves Onchain Fund, a tokenized vehicle that will invest in cash and short-term U.S. Treasuries to serve stablecoin issuers needing compliant, liquid reserves. The fund will maintain a constant $1 net asset value, comply with the GENIUS Act's reserve framework, and run on a public blockchain using Superstate as sub-transfer agent to maintain an on-chain shareholder registry. Invesco joins BlackRock, State Street, and ProShares in racing to manage reserves for a stablecoin market that Citi projects could reach $4 trillion by 2030.

On the regulatory front, President Trump halted plans to sign the 21st Century Road to Housing Act, which had passed the Senate and carried a provision banning the Federal Reserve from issuing a retail central bank digital currency through 2030. Trump said he would not sign the housing bill until Congress first passes the SAVE America Act, his voter ID priority legislation. The CBDC ban provision, which also carved out space for permissionless private stablecoins, now hangs in legislative limbo alongside the broader housing package.