The price of bitcoin dropped below $60,000 Wednesday (June 24), marking its first dip below that level since the beginning of June.
The decline also saw bitcoin fall as low as $59,023, which is the lowest price since October 2024, Bloomberg reported Wednesday.
The report attributed bitcoin’s decline to retail traders losing interest in the asset as they shift their intelligence to artificial intelligence stocks, bitcoin treasury company Strategy Inc. facing billions of dollars of unrealized losses, and exchange-traded fund (ETF) buyers being underwater if they bought bitcoin when it was far higher.
Previously, these investors stepped in to buy bitcoin when it experienced sharp selloffs, according to the report.
In addition, during the recent conflict in the Middle East and surge in inflation, bitcoin traded more like a high-volatility risk asset than the hedge that many expected it to be, according to the report.
CNBC reported Wednesday that this is the third time this year that bitcoin has fallen below $60,000 and that the cryptocurrency has been in a bear market for about eight months.
The report said bitcoin is being pressured by a shift of capital into AI stocks, hot IPOs and prediction markets; the Federal Reserve’s focus on fighting inflation during the Iran war; a growing loss of confidence among investors about bitcoin’s unique value proposition; and the possibility that the Clarity Act market structure bill could miss a rapidly closing window in the legislative calendar and be delayed until fall.
At the same time, this decline in bitcoin’s price has been more muted than in previous crypto winters, largely because there is more participation from institutional investors, according to the report.
The Wall Street Journal reported Wednesday that shares of Strategy declined about 10% Wednesday, raising concern among investors that the company may not be able to issue new preferred capital to fund its acquisition of bitcoin.
PYMNTS reported in March, when bitcoin fell below $69,000, that the current downturn started in October 2025, just after the cryptocurrency hit its highest-ever price.
In March, industry observers hoped that new guidance from regulators on applying securities laws to crypto tokens might help boost prices.
