NEW DELHI, June 6: Bitcoin fell below $60,000 for the first time since October 2024, extending a broad reversal that has seen the largest cryptocurrency lose more than half its value from an October peak above $126,000.
The cryptocurrency slid as much as 7 per cent to $59,101, and was trading at $59,743.21 apiece early on Saturday. Bitcoin is suffering from liquidity shifts especially by institutional investors and capital rotation into sectors drawing fresh investor attention such as artificial intelligence, defence, energy and infrastructure, market participants said.
Competition from gold and AI stocks, and a reassessment of Federal Reserve rate‑cut prospects, have also weighed on crypto demand, analysts said.
Investors will be watching whether Bitcoin can hold support in the $60,000–$62,000 range, which could restore confidence, market participants said.
ETF flows, institutional participation, macroeconomic developments and geopolitical events are expected to be important near‑term drivers.Some experts said that the next phase of crypto growth will be driven by greater regulatory clarity, stablecoin innovation, and the tokenisation of real-world assets.
Investors should focus on their investment horizon, risk management, and portfolio allocation, rather than short term price movements, they suggested. Crypto market enthusiasm fell after President Donald Trump nominated Kevin Warsh as his choice for Federal Reserve chair as investors felt a more hawkish Fed under Warsh would shrink the central bank balance sheet, removing liquidity that has supported risk assets. (PTI)
