Bitcoin hits 20-month low as market sentiment sours and investors chase AI instead

Bitcoin fell below $60,000 on June 24, approaching a significant low of roughly $59,100 that was first established on June 5. That puts BTC at levels not seen since approximately September or October 2024, a 20-month trough that would have seemed improbable when the asset was flirting with its all-time high less than a year ago.

The culprit is not a single event but a slow bleed of confidence. Retail investors are rotating out of crypto and into AI-related equities, US Bitcoin ETFs hemorrhaged approximately $6.4 billion in net outflows during May alone, and the broader tech sector is grappling with chip sell-offs that have rattled risk-on assets across the board.

A multi-week slide with no floor in sight

In early June, BTC dropped to around $69,000, its lowest price since April 7. From there, selling pressure intensified. Bitcoin ground lower through mid-June, eventually piercing the psychologically important $60,000 level. The asset now sits roughly 52.6% below its all-time high of approximately $126,272, which was reached in October 2025.

The damage extends beyond Bitcoin itself. DeFi’s total value locked, the combined dollar amount deposited in decentralized finance protocols, also fell to a 20-month low during June.

The AI trade is eating Bitcoin’s lunch

AI tokens have shown strong performance relative to Bitcoin, and AI-adjacent equities have attracted a wave of investor interest that used to flow naturally into crypto. The $6.4 billion in May outflows from US Bitcoin ETFs suggest that even institutional demand through ETFs is wobbling.

What this means for investors

$6.4 billion leaving in a single month represents a meaningful portion of total ETF assets under management, and it creates direct selling pressure because ETF issuers must liquidate their Bitcoin holdings to meet redemptions.

Some analysts have pointed to potential resilience in spot Bitcoin ETF structures as a reason for cautious optimism, suggesting that current conditions could set up a future rebound. Short-term forecasts indicate BTC could dip further toward the $58,000 to $59,000 range before any meaningful recovery materializes.

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