Bitcoin Price Decline
Bitcoin fell 1.7% to $61,721 by 02:42 ET (06:42 GMT) on Thursday, slipping below the $62,000 threshold and remaining close to a 1½‑year low first seen earlier in June. It had briefly dropped below $60,000 on Wednesday.
Bitcoin ETF Outflows
Spot Bitcoin exchange‑traded funds registered a net outflow of $469 million on Wednesday, the largest single‑day outflow since June 2 and marking the seventh consecutive week of withdrawals, indicating waning interest from both institutional and retail investors.
Market Sentiment Shift
Investors continued to pivot toward assets with clearer fundamentals, notably artificial‑intelligence and semiconductor stocks. Global chipmakers rallied sharply after memory‑chip leader Micron reported strong earnings, reinforcing the AI‑driven trade.
Other Crypto Prices
Ethereum slipped 1.2% to $1,652.47, while XRP, Solana, Cardano and BNB each posted modest declines. Among meme‑coins, Dogecoin fell 2.2% and $TRUMP dropped 1.6%.
Retail Demand Indicator
Glassnode data showed Bitcoin trading at a significant discount on Coinbase relative to the global average, suggesting limited retail demand in the United States.
Macro Focus: U.S. PCE Index
Market attention centered on the upcoming U.S. Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, scheduled for release later Thursday. Hawkish signals from the Fed’s June meeting have heightened concerns that higher interest rates could persist, a scenario that traditionally pressures non‑yielding assets such as cryptocurrencies.
Implications
The combination of a sub‑$62,000 Bitcoin price, deep ETF outflows, and a shift toward AI‑related equities underscores a broader risk‑on rotation away from crypto amid expectations of sustained elevated U.S. interest rates.