Bitcoin fell below $59,000 on Wednesday as expectations of higher US interest rates continued to weigh on the cryptocurrency market.
The world’s largest cryptocurrency remained under pressure after recording steep quarterly losses. Investors also showed limited interest in buying crypto amid broader risk aversion and stronger demand for artificial intelligence-related assets.
Bitcoin Price Falls Toward a 22-Month Low
Bitcoin declined 1.1% to $58,919.10 by 02:18 ET, or 06:18 GMT.
Earlier in the session, the Bitcoin price briefly fell to $57,832.50. That marked its lowest level in 22 months.
Institutional selling also added pressure. Spot Bitcoin exchange-traded funds appeared set to record an eighth consecutive week of net outflows.
Bitcoin Records Heavy Quarterly Losses
Bitcoin fell approximately 14% during the June quarter.
The latest decline increased its year-to-date loss to 32%. Bitcoin was also trading more than 50% below the record high reached in October.
The cryptocurrency market has received few positive signals in recent months, while concerns about monetary policy have continued to dominate investor sentiment.
Higher Interest Rate Expectations Pressure Crypto
A large part of Bitcoin’s recent weakness has been linked to expectations of rising US interest rates.
Higher rates usually increase the appeal of interest-bearing assets. At the same time, they raise the opportunity cost of holding non-yielding investments such as Bitcoin and other cryptocurrencies.
The Federal Reserve adopted a more hawkish tone at its June meeting. As a result, investors increased their expectations that the central bank could raise interest rates at least once this year.
Those expectations placed additional pressure on Bitcoin and the wider crypto market.
Markets Await Comments From Kevin Warsh
Investors were also preparing for remarks from Federal Reserve Chair Kevin Warsh later in the day.
Markets will closely examine his comments for new information about inflation, the US economy, and the future direction of interest rates.
Any signal that monetary policy may remain restrictive could create further volatility across cryptocurrencies.
AI Stocks Draw Investors Away From Crypto
The growing popularity of artificial intelligence-related stocks has also weakened demand for digital assets.
In recent months, many investors have preferred AI companies with clearer earnings prospects and stronger business fundamentals.
By comparison, cryptocurrencies are often viewed as more speculative investments.
This shift was reflected in continued institutional withdrawals from spot Bitcoin ETFs. The funds recorded seven consecutive weeks of outflows and were on track for an eighth.
US-Iran Uncertainty Adds to Risk Aversion
Uncertainty surrounding further US-Iran peace negotiations also reduced investor appetite for risk.
Questions over whether the two countries could reach a lasting agreement encouraged investors to remain cautious across financial markets.
The geopolitical uncertainty added another challenge for Bitcoin at a time when the cryptocurrency was already struggling with tighter monetary conditions.
Taiwan Approves Major Cryptocurrency Law
Taiwan passed a broad cryptocurrency law on Tuesday, introducing a new regulatory framework for digital asset companies.
The legislation, known as the Virtual Asset Service Act, requires businesses to obtain licenses before offering cryptocurrency-related services.
It also introduces stricter rules covering cybersecurity, customer asset protection, internal controls, and stablecoin issuers.
The law represents one of Taiwan’s most significant steps toward formal regulation of the cryptocurrency industry.
Trump Reports $1.4 Billion From Crypto Ventures
US President Donald Trump reported more than $1.4 billion in income from his family’s cryptocurrency businesses during 2025.
The figure appeared in his annual disclosure to the US Office of Government Ethics.
The income reportedly came from World Liberty Financial, cryptocurrency token sales, and the launch of the $TRUMP memecoin.
The memecoin generated approximately $635 million in returns for Trump, according to the disclosure.
Trump promoted a broadly supportive position toward cryptocurrency during his election campaign. After returning to office, he signed several executive orders designed to encourage more crypto-friendly regulation.
Altcoins Remain Weak After Difficult Quarter
Most major altcoins traded cautiously on Wednesday after recording significant losses during the previous quarter.
Ether, the world’s second-largest cryptocurrency, fell 0.3% to $1,588.28. XRP also declined slightly.
Solana rose 1.2%, while Cardano gained 3.7%. Binance Coin fell 0.6%.
Among major memecoins, Dogecoin slipped 0.5%, while the $TRUMP token increased 1.9%.
Bitcoin Outlook Remains Under Pressure
Bitcoin continues to face several challenges, including higher interest rate expectations, institutional ETF selling, geopolitical uncertainty, and competition from AI-related investments.
Traders will now focus on Federal Reserve commentary, Bitcoin ETF flows, and broader market sentiment for signs that selling pressure may begin to ease.
