Bitcoin plunges below $60,000 to new 2026 low amid chip selloff

Bitcoin Falls Below $60,000 as AI-Driven Selloff Triggers Broad Risk-Off Move

Bitcoin plunged to a year-to-date low of $59,018 on Wednesday, June 24, shedding roughly 5% in 24 hours as a deepening selloff in semiconductor and AI-related stocks pushed investors out of risk assets across the board. The drop marks the second time this month that the cryptocurrency has breached the $60,000 level, having briefly touched $59,353 on June 5 during an earlier wave of selling.bitcoin

The decline extended a slide that began after bitcoin peaked just above $65,500 on Monday, translating into a nearly 10% weekly loss and a more than 30% retreat since the start of the year. The broader crypto market capitalization fell to $2.15 trillion, a level last seen in February 2024.bitcoin

Liquidation Cascade

The flash crash triggered $237 million in long liquidations within four hours and $486 million in long positions wiped out across the wider crypto market during the same window, according to Bitcoin.com. Market analysts warned that a further drop below $58,000 could expose more than $1.6 billion in additional long-side leveraged bets to forced closure.bitcoin

Bloomberg reported that bitcoin fell as much as 5.4% to $59,023 on Wednesday, noting the retreat of retail traders has exposed fresh fragility in the market. CoinDesk separately noted that the chip selloff deepened for a second consecutive day, weighing on crypto sentiment.coindesk

AI Rotation and Dollar Strength

The crypto selloff mirrors a broader reallocation of capital away from speculative assets and toward AI infrastructure. Reuters reported earlier this month that bitcoin has lost a third of its value in 2026 — its steepest decline for this period in over a decade — as surging AI stocks and upcoming IPOs draw investment away from digital assets. Net outflows from spot Bitcoin ETFs exceeded $2.7 billion in one recent week, bringing total 2026 outflows to $3.1 billion.reuters

A strengthening U.S. dollar and the Federal Reserve’s hawkish posture have compounded the pressure. CME FedWatch data continues to show zero probability of rate cuts in 2026 with a 35% chance of a hike by year-end.usagold

Precious Metals Join the Retreat

The risk-off mood extended to commodities. Gold slipped to $3,989 per ounce on Wednesday, falling below $4,000 for the first time since November 2025. Silver dropped to $59.46 per ounce, down roughly 8.6% on the day after closing at $65.08 on Tuesday.usatoday

Contrarian traders view the liquidation flush as a potential capitulation signal, with market participants watching the June 30 window as a possible inflection point for bitcoin’s next structural trend.bitcoin