Bitcoin Slides Below $62k as AI and Rate Hikes Push Markets Down

Bitcoin has fallen sharply from its October peak to $61,500, erasing more than half of its recent gains. The slide has rippled through companies that depend on crypto earnings.

• Price Path
• Fell past $61,800 earlier in the week.
• Slipped below $60,000 on June 5—a level unseen since late last year.

• A brief bounce followed by a stall has left the market uneasy.

• Driving Factors
• Federal Reserve outlook: Two rate hikes in 2026 reduce the appeal of risk assets like Bitcoin, making cash and bonds more attractive.
• Spot ETF outflows: Roughly $6 billion lost in six weeks, with $2.4 billion out of June alone. The remaining buyers are mainly ETF managers or corporate treasuries; when they exit, prices follow.
• AI boom: U.S. tech giants plan to spend over $700 billion on AI infrastructure in 2026, pulling speculative capital away from Bitcoin. A tech stock sell‑off that began Monday dragged the Nasdaq 100 down, and Bitcoin’s price fell in tandem.

• Corporate Impact
• Strategy (largest corporate holder): Down for five straight sessions, losing over 20 % in a week after selling 32 BTC ($2.5 million) to cover preferred‑stock dividends—a first sale since 2022 that shocked investors.
• Cash reserves fell from $2.25 billion to around $900 million, while still owing $750–800 million in annual preferred dividends.

• Strive (backed by Vivek Ramaswamy): Bought 2,500 BTC at an average of $74,092—well above today’s price—leading to paper losses and a share drop when disclosed. Holds about 19,864 BTC (~$1.3 billion) and faces similar dividend obligations as Strategy.

• Other Names in the Red
• Coinbase down 2.5 % on Tuesday.
• Circle (stablecoin issuer) fell more than 4 %.

Current Bitcoin price: $61,205.