Bitcoin Drops One-Third to $60,000 as Fed Tightening and AI Stocks Drain Demand
Updated
Updated · Financial Times · Jul 1
Bitcoin Drops One-Third to $60,000 as Fed Tightening and AI Stocks Drain Demand
3 articles · Updated · Financial Times · Jul 1
Summary
$60,000 marks bitcoin’s slide of about one-third this year, with the latest pressure tied to the Fed’s hawkish turn and investors rotating into AI stocks and other momentum trades.
Deutsche Bank said tighter-rate expectations have reversed the liquidity case that helped draw institutional allocators into bitcoin during the 2024-25 easing narrative.
Crypto-linked vehicles have fallen harder: Strategy shares are down 46% this year, worse than bitcoin’s 31% drop, and Michael Saylor has started selling bitcoin after previously vowing not to.
Spot bitcoin ETFs have logged six straight weeks of outflows—the longest retreat since their 2024 launch—showing how the same institutional flow channels that fueled the rally are now amplifying the decline.