Bitcoin Slumps Below $60K Amid Fed Rate Hikes and AI Investment Shift

Bitcoin's price plummeted below $60,000 in early June, its lowest since late 2024. The drop was attributed to a hawkish Federal Reserve outlook, record outflows from U.S. spot Bitcoin ETFs, and investors shifting their capital into AI-related stocks. According to Deutsche Bank, Bitcoin is maturing into an institutional asset, influenced more by fund flows, monetary policy, and regulation than retail speculation.

The bank noted that ongoing Fed rate hikes and ETF outflows are key pressures on the market, while competition from AI investments diverts risk capital away from crypto. The near-term direction of Bitcoin's price depends on institutional demand and broader economic conditions.