Bitcoin Falls Below $75,000 as Crypto Legislation Stalls and Miners Pivot to AI

Bitcoin has retreated steadily since reaching a high of more than $125,000 in October 2025, while ETF and corporate buying in the crypto market has also weakened. Greg Cipolaro, NYDIG’s global head of research, said AI has become the more favored growth theme and is competing with crypto assets for capital. Technology IPOs, concerns about quantum computing and Strategy’s bitcoin sales have also weighed on demand.

Bitcoin fell below $60,000 on June 5, reaching its lowest level since late 2024. NYDIG said on June 7 that there was no single cause for the decline. The cryptocurrency was quoted at about $59,940 on June 28, down 0.6% over 24 hours and nearly 7% for the week. It could extend its decline into the second quarter, which would mark its first back-to-back quarterly losses since 2022.

Strategy, formerly MicroStrategy, has allocated heavily to Bitcoin through its corporate balance sheet since 2020 and had long maintained a buy-only stance, making its moves a gauge of institutional confidence. Its first reduction in nearly four years, though extremely small, amplified market concerns as spot ETFs continued to see outflows. BitMine moved in the opposite direction by adding ETH, highlighting a divergence in corporate crypto-asset strategies.

Strategy sold 32 BTC from May 26 to May 31, 2026, at an average price of $77,135, raising about $2.5 million to pay preferred-stock dividends. The sale represented only about 0.004% of its holdings of more than 843,700 BTC. On June 1, BitMine disclosed that it had purchased 26,497 ETH worth about $53 million. Bitcoin fell below $72,000 on June 2 and at one point approached $69,000.

Bitcoin and AI chips are both highly volatile risk assets, and shifts in capital allocation often link the two markets. Strategy, formerly MicroStrategy, has long bet its balance sheet on Bitcoin. The company and its co-founder Michael Saylor have become key gauges of institutional crypto exposure and financing risk.

Bitcoin fell as low as $61,400 on June 4, 2026, losing about 7% in 24 hours and 13% over the week. Saylor attributed the decline to capital rotating into AI. Broadcom shares plunged about 15% the same day after the company maintained, but did not raise, its forecast for more than $100 billion in fiscal 2027 AI chip revenue, dragging other chip stocks lower.

Bitcoin is highly sensitive to interest rates and risk appetite. Conflict in the Middle East and the Strait of Hormuz crisis have driven up oil prices and inflation concerns, while rising U.S. Treasury yields have pushed capital toward safe-haven assets such as the dollar. The latest decline has also affected liquidity across the broader cryptocurrency market.

As of July 19, Bitcoin had fallen about 3% over 24 hours, dropping below $67,000 and touching a two-week low. The U.S. 10-year Treasury yield approached 4.5%, near a one-year high, while about $300 million in long positions were liquidated. Core Scientific separately sold $175 million worth of Bitcoin and plans to redirect the proceeds into AI data centers and high-performance computing operations.

Bitcoin has recently faced the dual pressures of spot-market selling and an escalation in the US-Iran military conflict, with Brent crude briefly rising to $95 a barrel. US spot Bitcoin ETFs have recorded $3.46 billion in net outflows since May 13, signaling capital flight from the crypto market and increasing the risk of cascading liquidations of leveraged positions.

On June 1, Bitcoin fell below $71,000 for the first time in seven weeks, liquidating about $276 million in leveraged long positions. However, the long-to-short ratio among Binance whales rose to 1.4 from 1.1 a week earlier, while the ratio on OKX climbed to 1.9 on Monday. Futures open interest across major exchanges held at $43.5 billion, suggesting professional traders were adding bullish positions on the dip, although a rebound still depends on an easing of spot-market selling pressure.

The 11 U.S.-listed spot Bitcoin ETFs have become an important gateway for institutional capital entering the crypto market, and their flows are also viewed as an indicator of price support. ETF redemptions, aggressive selling in spot and futures markets, and demand for options hedges are now rising in tandem, suggesting the correction may be more than a pullback after a rally.

Bitcoin fell about 6% from $82,000 to $76,800 and dropped below $77,000 again on May 22. SoSoValue data showed that the 11 ETFs had recorded more than $1.5 billion in outflows since May 7, including $648 million on May 18 alone. Glassnode said spot cumulative volume delta, or CVD, had fallen to negative $126.2 million, with key support at $74,000–$76,000.

Bitcoin is highly sensitive to interest rates and dollar liquidity. When US Treasury yields rise, non-yielding assets become relatively less attractive to hold. The latest decline coincided with losses in stocks and gold, reflecting traders’ reassessment of the Federal Reserve’s rate-hike path amid inflation concerns. The move was therefore not confined to the crypto market.

Around May 15, Bitcoin fell about 3% in a single day, breaking below $79,000 and touching $78,000 before sliding below $77,000 to a low of about $76,000. Liquidations of bullish crypto positions reached $500 million, while SOL and XRP each dropped about 5%. US Treasury yields neared 20-year highs, although Bitcoin’s implied volatility remained low.

Bitcoin is highly sensitive to interest rates and market liquidity. The U.S. Federal Reserve delivered its most hawkish signal in years through the Federal Open Market Committee, while the U.S.-Iran conflict increased energy and inflation risks. Investors responded by retreating from risk assets including cryptocurrencies, as oil prices climbed to their highest level since 2022.

Market analysis on May 18 showed Bitcoin falling below $76,000 and approaching $75,000, with some traders predicting a possible decline to $65,000. Recent buyers sold $770 million worth of BTC at a loss, reflecting how high oil prices, hawkish monetary policy and geopolitical tensions continue to suppress demand.

Bitcoin is viewed as a risk asset, leaving its price sensitive to war, oil prices, inflation and U.S. Treasury yields. The U.S.-Iran conflict and the Strait of Hormuz standoff pushed crude oil to a three-week high. Renewed inflation concerns also drove funds out of cryptocurrencies, while traders focused on whether Bitcoin could hold its 21-week exponential moving average.

On Monday, April 27, Bitcoin fell as low as $76,567, losing more than 2% on the day and slipping below $77,000. U.S. spot Bitcoin ETFs recorded about $1 billion in net outflows the previous week. Analysts said BTC must hold its 21-week EMA and break through resistance at $80,000 to confirm a macro bullish shift.

Bitcoin's loss of long-term support suggests crypto assets could face a deeper correction. A “fair value gap” is a low-liquidity zone created after a sharp price move that markets often retrace to fill. Cointelegraph cited Rekt Capital as saying the 200-week EMA had flipped from support into potential resistance, affecting confidence across risk assets.

On February 24, 2026, TradingView data showed Bitcoin approaching $60,000 after falling nearly 3% on the day, while gold dropped 2% to $5,140 an ounce. The Kobeissi Letter said U.S. stocks had shed $800 billion in market value. Crypto Scient forecast on February 12 that BTC could fill the gap at $45,000.