Bitcoin drops to 4-month low at $61K

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Bitcoin declined sharply on Thursday, June 4, 2026, hitting a near four-month low as global cryptocurrency markets came under pressure from escalating geopolitical tensions in the Middle East and sustained institutional outflows from Bitcoin exchange-traded funds (ETFs). The move reflects a broader shift in investor appetite away from risk assets toward safer and higher-growth sectors.

Market sentiment remained weak as investors continued to reassess exposure to digital assets amid macroeconomic uncertainty and increasing volatility across global financial markets.

Bitcoin Price Performance

Bitcoin recorded significant losses during the session before partially recovering:

· Bitcoin fell to $61,442.7, its lowest level in nearly four months

· It later recovered to trade around $63,832.4

· The asset remains approximately 50% below its October record high

ETF Outflows and Institutional Pressure

A major driver of the decline was continued institutional selling through spot Bitcoin ETFs:

· Bitcoin ETFs recorded $396 million in outflows on Wednesday

· This followed approximately $1.02 billion in outflows earlier in the week

· Total outflows reached $3.7 billion over the past three weeks

These flows reflect a broader reduction in institutional exposure to crypto assets amid heightened risk aversion.

Geopolitical and Macro Drivers

Broader macroeconomic and geopolitical conditions also weighed on crypto markets:

· Escalating U.S.-Iran tensions increased overall market risk aversion

· Investors moved toward the U.S. dollar as a safe-haven asset

· Expectations of prolonged conflict contributed to inflation-related concerns

Market participants also noted that uncertainty around peace negotiations continues to pressure sentiment in risk-sensitive assets.

Altcoins Extend Losses

The weakness extended across the wider cryptocurrency market:

· Ether (ETH) fell 4.6% to $1,785.40

· XRP declined 4.1% to $1.1882

· Solana, Cardano, and BNB dropped between 5% and 9%

· Dogecoin fell 4%, while $TRUMP declined 7.8%

Market Rotation Toward AI Stocks

Analysts also pointed to a continued shift in capital flows from crypto assets into AI-related equities. The move reflects growing investor preference for technology stocks with stronger perceived fundamentals and clearer growth prospects, while adding further pressure on non-yielding digital assets.