Several factors have contributed to Bitcoin's recent decline, including the largest buyer becoming a seller, ETF outflows, and growing anxiety over interest rate hikes.
By Krisztian Sandor|Edited by Stephen AlpherUpdated Jun 5, 2026, 3:55 p.m. Published Jun 5, 2026, 3:02 p.m. 1 min readMake preferred on Bitcoin has reached its lowest price since October 2024 (Unsplash+/Getty Images)Key Points:
- Bitcoin has fallen below the $60,000 mark for the first time since October 2024.
- In just one week, it has dropped nearly 20% following the news that its largest buyer (Strategy) has shifted to selling.
- Outflows from ETFs, concerns about interest rate hikes, and a shift of speculative investments towards AI technologies have intensified the downward pressure on Bitcoin.
On Friday, Bitcoin BTC$62,300.09 dropped below the $60,000 threshold, marking a new low since October 2024 and surpassing the declines from the early February market crash.
The leading cryptocurrency has seen a nearly 20% decline in just the past week, and it has lost over 52% since its peak of more than $126,000 in October.
Multiple factors have converged to impact Bitcoin negatively, primarily the decision of its largest single buyer, Michael Saylor's Strategy, to sell. Moreover, spot Bitcoin ETFs have experienced significant outflows as investors have pulled funds from the sector, redirecting their investments towards the booming artificial intelligence market and stocks related to it.
Persistently high inflation rates and a robust labor market report released on Friday have led investors to reconsider the trajectory of U.S. monetary policy. Markets that had anticipated rate cuts earlier this year have now adjusted expectations to fully incorporate an upcoming rate hike by the Federal Reserve.
This shift has caused U.S. equities to lose steam after a strong rally to record highs, dampening risk appetite across various markets. The Nasdaq index fell by over 2% on Friday.
In addition, crypto investors are facing renewed worries about the potential vulnerabilities of crypto protocols in light of advancements in artificial intelligence and quantum computing. Privacy-centric cryptocurrency Zcash (ZEC) plummeted by more than 40% overnight after a significant flaw was discovered, aided by Anthropic's latest Opus 4.8 AI model.
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Key Facts:
- XRP fell to its lowest levels in months amid a liquidation-driven selloff, briefly dipping below $1.10 before buyers stepped in near $1.09.
- Despite approximately $4 million in new XRP ETF inflows and total inflows of around $1.5 billion, sentiment has soured as the token fell behind USDC in market capitalization.