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

Bitcoin is now trading around $61, 500, a sharp drop from its October record. The fall has taken over half of the token’s value and is spreading to companies that depend on crypto profits. The price fell past $61, 800 earlier in the week and even slipped below $60, 000 on June 5 – a level not seen since late last year. A brief bounce was followed by a stall that keeps the market uneasy. Deutsche Bank says the slump comes from several institutional shifts. The Federal Reserve now expects two rate hikes in 2026, which weakens the appeal of risk assets like Bitcoin. Higher rates make cash and bonds more attractive for investors. Spot Bitcoin ETFs have lost about $6 billion in six weeks, with $2. 4 billion leaving in June alone. Analysts note that the remaining buyers are mainly ETF managers or corporate treasuries, not everyday traders. When these big players pull out, the price follows. Artificial intelligence is adding extra pressure. U. S. tech giants plan to spend more than $700 billion on AI infrastructure in 2026, drawing speculative money away from Bitcoin. A tech stock sell‑off that started Monday also pulled the Nasdaq 100 down, and Bitcoin’s price fell in tandem.Companies built on Bitcoin accumulation feel the hit hard. Strategy, the biggest corporate holder, has fallen for five straight sessions and lost over 20 % in a week. The drop came after the firm sold 32 BTC for about $2. 5 million in late May to cover preferred‑stock dividends – a first sale since 2022 that shocked investors. Strategy’s cash reserves have shrunk from $2. 25 billion at the start of 2026 to around $900 million, while it still owes $750–$800 million in annual preferred dividends. Strive, a Bitcoin treasury firm backed by Vivek Ramaswamy, also took a hit after buying 2, 500 BTC at an average of $74, 092 – well above today’s price. The move left the company with paper losses and prompted a drop in its shares when disclosed. Strive now holds about 19, 864 BTC worth roughly $1. 3 billion and faces the same dividend obligations as Strategy. Other crypto names are down too: Coinbase fell 2. 5 % on Tuesday, and stablecoin issuer Circle dropped more than 4 %. At the moment, Bitcoin sits at $61, 205.