Bitcoin Price Plunges To $59K, Sparking Fears Of Deeper Decline
Bitcoin’s latest drop appears tied to a mix of capital rotation and macro pressure. Michael Saylor argued that massive investment into AI infrastructure — about $400 billion over six months — is pulling money away from crypto, not signaling structural weakness in Bitcoin. SBI Holdings’ Yoshitaka Kitao made a similar point, citing upcoming IPOs from SpaceX, Anthropic, and OpenAI as competing draws on capital. The immediate catalyst was a stronger-than-expected US jobs report: May payrolls rose 172,000 versus an 85,000 forecast, with unemployment at 4.3%. That reduced hopes for Fed easing and raised the possibility of more rate hikes, which tends to hurt risk assets. Bitcoin fell from about $62,500 to near $59,000, later trading around $59,990, down 6% on the day and its lowest since October 2024. Weakness was reinforced by 14 straight sessions of spot Bitcoin ETF outflows, totaling nearly $5 billion, plus $545 million in liquidations as long positions were forced out.
