Bitcoin Weakness Below $60,000 Tied to Macro and AI Stress, Deutsche Bank Notes

Here’s another rewritten version with a slightly more concise and polished institutional tone:

Bitcoin’s drop to its weakest level since late 2024 reflects tighter Federal Reserve policy, persistent ETF outflows, and a broader rotation of capital into artificial intelligence, according to Deutsche Bank.

BTC’s slide below $60,000 on June 5 marked its lowest level since late 2024, underscoring what the bank describes as a mix of macroeconomic and structural headwinds. Deutsche Bank said Bitcoin is increasingly trading like an institutional risk asset rather than a retail-driven speculative trade.

The selloff was driven by a more hawkish Fed outlook, continued withdrawals from U.S. spot Bitcoin ETFs, a sentiment shock 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 dipping below $60,000 before recovering into the $62,000–$63,000 range. It remains more than 50% below its October 2025 peak amid tighter monetary policy expectations and weaker risk appetite.

While signs of stabilization have emerged, analysts say near-term direction will depend on whether institutional inflows return and macro conditions improve.

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 risk assets such as Bitcoin.

The bank also reported six consecutive weeks of net outflows from U.S. spot Bitcoin ETFs, totaling about $6 billion. With ETF flows now a key price driver, the reversal has intensified downward pressure.

Laboure added that artificial intelligence 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-linked equities as competing risk exposures.

“The marginal buyer is no longer a retail investor but an ETF allocator or corporate treasury,” she said, highlighting the shift in capital flows toward AI themes.

At press time, Bitcoin was down about 3.5% over 24 hours, trading near $62,600.