The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Following weeks of post-election optimism, the digital asset market has experienced a sharp reversal in momentum that has dampened trader sentiment. According to reports, Bitcoin's price dropped below the critical psychological support level of $60,000, effectively erasing all gains made since President Trump's reelection. The cryptocurrency is now down 50% from its peak, pressured by mounting concerns over U.S. regulatory policies and significant outflows from spot ETFs totaling $10 billion.
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Sign InThis decline comes as risk assets face headwinds from a strengthening dollar and shifting monetary policy expectations, with spot Bitcoin ETFs recording record outflows compared to earlier in the year. Looking at peer performance, crypto-linked stocks such as Marathon Digital and Riot Platforms have mirrored this downward trend, per market data. Investors are also weighing comments from Fed officials, particularly following Chair Powell's speech on May 31, 2026, which emphasized a cautious approach toward easing liquidity.
Technically, the market is closely watching price action following the close on June 6, 2026, as remaining below the $60,000 threshold signals further potential weakness. Traders are looking ahead to upcoming inflation data as a primary catalyst for the next directional move. Additionally, market participants are monitoring macro indicators like the ISM Manufacturing PMI, which printed at 54 on June 1, 2026, potentially supporting dollar strength and further weighing on Bitcoin's recovery prospects.