Bitcoin Tumbles Below $60,000 Amid ETF Outflows and Stronger Dollar

Bitcoin plummeted below $60,000 in value on Thursday and Friday as investors continued to pull out of crypto exchange-traded funds (ETFs) and the US dollar strengthened. This marks a continuation of June's weak performance for Bitcoin, which had traded above $70,000 earlier this month but has since faced several negative factors.

According to Fixygen, Bitcoin was trading at around $59,200 on Thursday and Friday, down approximately 3% over the past 24 hours. The intraday low reached $58,200, while Ether fell to $1,550, losing about 5.5% over the day.

Deutsche Bank attributed Bitcoin's drop below $60,000 to the Federal Reserve's hawkish rhetoric, outflows from ETFs, and concerns surrounding companies with high Bitcoin exposure. Ethereum has also failed to serve as a safe-haven asset within the crypto market, remaining under pressure alongside the broader market.

The dynamics of spot Bitcoin ETFs in the US remain a separate factor, with several waves of outflows experienced in June. Globally, cryptocurrencies are now competing for capital not only with traditional assets but also with the AI sector, which has seen investors shifting funds toward AI-related stocks and anticipated major IPOs.