Bitcoin briefly slipped under the key $60,000 level, reaching a session low of $59,159.3, its lowest price since October 2024.
At 17:38 ET (21:38 GMT) Bitcoin was $61,749.7, down 2.4%.
Institutional selling forced Bitcoin ETFs to record a $1.4 billion outflow this week, marking the fourth consecutive week of outflows exceeding $1 billion.
The heavy outflows contributed to a weekly decline of more than 16% for Bitcoin.
Retail sentiment turned negative, with Coinglass’ Bitcoin‑Coinbase premium index showing the crypto trading at a deep discount to the global average.
Risk‑aversion was heightened by renewed U.S.–Iran hostilities and a market shift toward artificial‑intelligence stocks.
Listed Companies and Sectors
Anticipation of large AI‑related IPOs (SpaceX, OpenAI, Anthropic) is drawing investor capital away from non‑yielding crypto assets.
Investment Flows
Institutional investors withdrew $1.4 billion from spot Bitcoin exchange‑traded funds.
Retail investors exhibited aversion, reflected in the premium discount metric.
Interest Rates, Inflation, and Liquidity
The U.S. May jobs report added 172,000 jobs, far above the 85,000 forecast, while the unemployment rate held steady at 4.3%.
Average hourly earnings rose 0.3% month‑on‑month, matching estimates.
Revised figures added 93,000 jobs to April and March totals, underscoring a robust labour market.
Oil prices have surged following a joint U.S.–Israel assault on Iran, raising concerns that inflation could reignite.
Markets now price in at least one Federal Reserve rate hike by the end of 2026 (CME FedWatch Tool).
Fiscal or Monetary Policy
The strong employment data and inflation worries are prompting expectations of tighter monetary policy, with analysts noting that unemployment and wage growth are not hot enough to dramatically shift the outlook.
