Bitcoin’s recent drop below $60,000 signals Fed, ETF and AI pressures: Deutsche Bank Bitcoin’s slump to its lowest level since late 2024 reflects a hawkish Federal Reserve, exchange-traded fund outflows and a shift of capital into AI, the bank said. – Deutsche Bank said…
tcoin’s drop below $60,000 this month was driven by a hawkish Fed outlook, record ETF outflows and concerns over leveraged corporate holders. – The bank said investors are increasingly rotating risk capital into AI-related equities and infrastructure, creating a more durable headwind for crypto demand. – Bitcoin is evolving into an institutional asset whose price is increasingly determined by fund flows, monetary policy and regulation rather than retail speculation. Bitcoin’s The investment bank said bitcoin’s renewed sell-off was driven by a hawkish shift in Federal Reserve expectations, sustained outflows from U.S. spot bitcoin exchange-traded funds (ETFs), a confidence shock following Strategy’s (MSTR) first BTC sale since 2022, and a broader rotation of investor capital into artificial intelligence. “Bitcoin is not disappearing; it is maturing into an institutional asset whose price is set by fund flows, Fed expectations, competing risk themes, and legislative outcomes,” analyst Marion Laboure said in the Tuesday report
BTC has struggled in recent weeks, briefly falling below $60,000 on June 5 before rebounding to around $62,000-$63,000. Bitcoin remains more than 50% below its October 2025 record high, pressured by a hawkish shift in Federal Reserve expectations, persistent outflows from spot bitcoin exchange-traded funds and a broader pullback in risk appetite. While investors may see signs of stabilization near current levels, some analysts say bitcoin’s near-term direction will likely depend on whether institutional demand returns and macroeconomic conditions improve.
Deutsche Bank’s economists now expect the Fed to raise interest rates twice in 2026, reversing earlier expectations that…