Here’s another clean rewrite with a slightly sharper, more compact market-report tone:
Bitcoin’s drop to its lowest level since late 2024 reflects a mix of tighter Federal Reserve policy, persistent ETF outflows, and a broader rotation of capital into artificial intelligence, according to Deutsche Bank.
BTC’s fall below $60,000 on June 5 marked its weakest level since late 2024, underscoring what the bank describes as a convergence of macro and structural pressures. Deutsche Bank said Bitcoin is increasingly behaving like an institutional risk asset rather than a retail-driven speculative trade.
The bank attributed the selloff to a more hawkish Fed outlook, continued withdrawals from U.S. spot Bitcoin ETFs, a confidence hit following Strategy’s first BTC sale since 2022, and a broader shift of capital toward AI-linked investments.
“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 wrote.
Bitcoin has remained under pressure in recent weeks, briefly slipping below $60,000 before recovering into the $62,000–$63,000 range. It remains more than 50% below its October 2025 peak amid tighter policy expectations and weak risk appetite.
While some stabilization is emerging, analysts say near-term direction will depend on renewed institutional demand and macro conditions.
Deutsche Bank economists now expect the Federal Reserve to raise rates twice in 2026, reversing earlier expectations of policy easing and removing a key tailwind for Bitcoin and other risk assets.
The bank also noted six straight weeks of net outflows from U.S. spot Bitcoin ETFs, totaling about $6 billion. With ETF flows now a major price driver, the reversal has added further downside pressure.
Laboure added that AI is increasingly competing for capital allocation, with U.S. tech firms projected to spend more than $700 billion on AI infrastructure in 2026. Investors are now weighing Bitcoin against AI-related equities as competing risk assets.
“The marginal buyer is no longer a retail investor but an ETF allocator or corporate treasury,” she said, pointing to a shift in capital flows toward AI themes.
At press time, Bitcoin was down about 3.5% over 24 hours, trading near $62,600.
