Bitcoin's recent drop to its lowest point since late 2024 is a result of a hawkish Federal Reserve stance, significant ETF outflows, and a capital shift towards AI, the bank noted.
By Will Canny, AI Boost|Edited by Jamie Crawley Jun 23, 2026, 2:54 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Deutsche Bank attributes Bitcoin's decline to various economic factors. (Unsplash)SummaryShow- According to Deutsche Bank, Bitcoin's recent dip below $60,000 is attributed to a hawkish outlook from the Fed, record outflows from ETFs, and concerns regarding leveraged corporate holders.
- The bank noted that investors are increasingly reallocating risk capital towards AI-related stocks and infrastructure, which poses a long-term challenge for crypto demand.
- Bitcoin is transitioning into an institutional asset, with its price now more influenced by fund flows, regulatory changes, and monetary policy rather than retail speculation.
Bitcoin's BTC$62,436.82 decline below $60,000 on June 5 marked its lowest point since late 2024, reflecting a mix of macroeconomic and structural factors, as per Deutsche Bank (DB). The bank emphasized that BTC is increasingly behaving like an institutional risk asset rather than being driven by retail speculation.
The recent sell-off in Bitcoin was attributed to a hawkish adjustment in Federal Reserve forecasts, ongoing outflows from U.S. spot bitcoin exchange-traded funds (ETFs), a confidence shock after MicroStrategy's (MSTR) first BTC sale since 2022, and a broader trend of investors moving capital towards artificial intelligence.
Analyst Marion Laboure remarked in the Tuesday report, "Bitcoin is not disappearing; it is maturing into an institutional asset whose price is influenced by fund flows, Fed expectations, competing risk themes, and legislative outcomes."
Bitcoin has faced challenges recently, dipping below $60,000 on June 5 before recovering to around $62,000-$63,000. It remains over 50% lower than its peak in October 2025, pressured by the Federal Reserve's hawkish stance, persistent ETF outflows, and a general decline in risk appetite among investors.
Some analysts suggest that while there may be signs of stabilization, Bitcoin’s short-term trajectory will largely hinge on a resurgence of institutional demand and improved macroeconomic conditions.
Deutsche Bank's economists now foresee two interest rate hikes by the Fed in 2026, a shift from their earlier predictions of easing monetary policy. This change removes a significant support factor that had previously bolstered institutional demand for Bitcoin and other risk assets, according to the report.
U.S. spot bitcoin ETFs have experienced six consecutive weeks of net outflows totaling approximately $6 billion, as noted by Deutsche Bank. Given that ETF demand plays a crucial role in determining Bitcoin's price, the reversal in these flows intensifies downward pressure.
Laboure also highlighted the increasing competition from artificial intelligence investments, with U.S. tech companies projected to invest over $700 billion in AI infrastructure in 2026. Investors are increasingly viewing Bitcoin and AI-related equities as competing options for speculative capital.
The analyst noted, "The marginal buyer is no longer a retail investor but an ETF allocator or corporate treasury," adding that these investors are weighing Bitcoin against opportunities in AI.
Bitcoin was trading at around $62,600, reflecting a 3.5% decrease over 24 hours at the time of this report's publication.
Read more: Bitcoin inflows slow sharply in 2026 as investors chase AI, Bernstein says
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes declined by 3.45% to $4.41T, representing the lowest level since September 2024. In contrast, RWA perpetual futures volumes increased by 10.4%, achieving a new record.
Why it matters:
In May, total exchange volumes decreased by 3.45% to $4.41T, the lowest since September 2024. RWA perpetual futures volumes, however, climbed 10.4%, hitting a new all-time high.
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