On June 25, data from Coinbase indicated that Bitcoin briefly fell over 5% to around $59,000, marking the first time it has traded below $60,000 since October 2024.
This decline represents more than a 50% drop from its all-time high of approximately $126,000 reached in October 2025. Since the beginning of this year, Bitcoin has decreased by over 30%, continuing a trend of underperformance among risk assets.
The primary concern driving this decline is interest rates. As the likelihood of rate hikes by the Federal Reserve increases, volatile cryptocurrencies like Bitcoin often face selling pressure first.
Supply and demand dynamics have also weakened. There has been a recent outflow of funds from U.S. Bitcoin spot ETFs, as institutional investors who previously supported the Bitcoin rally have withdrawn their investments, diminishing the price support.
Investor interest has shifted toward AI-related stocks, further contributing to Bitcoin's decline. Recently, the market has seen strength in semiconductor and AI infrastructure stocks, while cryptocurrencies have failed to show significant recovery even as the stock market rebounds.
The breach of the $60,000 level indicates a weakening of market sentiment. If Bitcoin does not quickly recover this level, additional selling pressure may increase.
* This article has been translated by AI.
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