Bitcoin Slumps Below $60k Amid Interest Rate Hike Expectations and Strong May Jobs Report

Bitcoin's price has been under pressure due to a combination of factors, including steep institutional outflows and a broader shift towards artificial intelligence stocks.

The cryptocurrency fell below $60,000 for a brief period, marking its lowest level since October 2024. This decline was largely driven by the anticipation of interest rate hikes following a strong May jobs report.

According to data from SoSoValue, Bitcoin ETFs experienced an outflow of $1.4 billion this week, their fourth consecutive week of over $1 billion outflows. Additionally, retail investors have been increasingly averse to Bitcoin, with the Coinglass' Bitcoin Coinbase premium index showing the cryptocurrency trading at a deep discount.

The US economy added 172,000 jobs in May, nearly double the forecast, amid heightened risk-aversion spurred by uncertainty over the U.S.-Iran war. This strong labor market reading has pushed expectations towards tighter monetary policy, with markets now pricing in at least one Federal Reserve rate hike by the end of 2026.