Bitcoin Hits 21-Month Low as AI Momentum Diverts Capital

Bitcoin reached a 21-month low of $58,131 on June 25, 2026, marking a decline of over 51% from its record highs. The crash followed a period of bearish sentiment on June 24, when prices slid toward $62,000 amid widening put-call skews on the Deribit options exchange and flattening demand for spot ETFs. Total cryptocurrency market capitalization dropped by $2.2 trillion, while nearly $1 billion in long positions were liquidated within 24 hours.

BlackRock and other institutional players contributed to the downturn. BlackRock deposited approximately $150 million in Bitcoin and $63 million in Ethereum into Coinbase, potentially for sale. Meanwhile, spot Bitcoin ETFs experienced significant net outflows, including losses from the iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund. Analysts from CryptoQuant and Rekt Capital identified the $60,000 level as a critical battleground that triggered widespread panic selling once breached.

Several macroeconomic factors drove the sell-off, including expectations of Federal Reserve interest rate hikes following inflation data and hawkish signals from the Bank of Japan. Additionally, investors shifted capital toward AI-backed businesses and SpaceX. Market participants also cited regulatory uncertainty stemming from the GENIUS Act and CLARITY Act frameworks. The decline coincided with the US Dollar Index reaching a 13-month high, further dampening the appeal of risk assets.