Bitcoin Near Lows as AI Rotation and ETF Outflows Weigh

Key Moments

Bitcoin Lags Risk Rally as Selling Pressure Persists

Bitcoin remained under pressure on Thursday, trading close to its weakest levels this year and failing to participate meaningfully in a broader risk-on move across markets. The cryptocurrency slipped 1.2% to $61,685.0 by 06:11 ET (10:11 GMT), after briefly dropping below $60,000 on Wednesday. The token stayed near a low reached earlier in June that marked its weakest point in roughly 1-½ years.

Sentiment around digital assets remained fragile as investors continued to pull capital from crypto exchange-traded funds. At the same time, expectations solidified that the U.S. Federal Reserve could keep interest rates elevated for longer, or even consider additional increases this year. Market attention was firmly fixed on the upcoming U.S. personal consumption expenditures (PCE) price index – the Fed’s preferred inflation gauge – for further direction on the policy outlook.

ETF Outflows Accelerate as Investors Pivot to AI and Clearer Fundamentals

Spot Bitcoin exchange-traded funds saw a notable pickup in redemptions on Wednesday, coinciding with a continued rotation toward artificial intelligence-related assets and instruments perceived to have more transparent fundamental drivers.

The $469 million withdrawn from spot Bitcoin ETFs on Wednesday marked their largest single-day outflow since June 2. The products were positioned for a seventh straight week of net redemptions, highlighting waning enthusiasm among both institutional and retail participants.

Data from Glassnode indicated that Bitcoin was trading at a significant discount on Coinbase relative to the global average price, underscoring subdued retail appetite in the United States.

Crypto has been steadily losing traction this year as investors redirected funds into assets perceived to have stronger or clearer fundamentals. Artificial intelligence-related stocks have been a key beneficiary of this shift, with global chipmakers rallying sharply on Thursday following strong earnings from memory chip producer Micron.

Altcoins Mixed as Market Watches PCE Inflation Data

Price action across the broader cryptocurrency complex was mostly subdued on Thursday. Ether, the second-largest token by market size, declined 1% to $1,647.47.

Among major altcoins, XRP and Solana ticked lower, while Cardano gained 1.4%. BNB slipped 1.2%. In the memecoin segment, Dogecoin dropped 2.1%, and $TRUMP declined 1.3%.

Traders were focused on the forthcoming U.S. PCE price index release, scheduled for later on Thursday. The indicator is widely watched as the Federal Reserve’s preferred measure of inflation and is expected to influence the central bank’s plans for interest rates.

Earlier hawkish signals from the Fed during its June meeting had unsettled crypto markets, as higher interest rates tend to weigh on non-yielding assets such as digital tokens.