The invention relates to a protecting-box-type Fe-based amorphous magnetic powder core of magnetic permeability mu=60 and a preparation method thereof. The method comprises the following steps: firstly, carrying out mixing, passivating, bonding and coating pelleting processing on three levels of Fe-based amorphous alloy powders of 5-30wt% through a screen of -120 to +150 meshes, 15-40wt% through the screen of -150 to +200 meshes and 30-80wt% through the screen of -150 to +200 meshes; then carrying out press forming processing and annealing heat processing in sequence; and finally carrying out boxing, glue filling and drying processes on a compact in sequence, and lastly obtaining the magnetic powder core. According to the above-mentioned magnetic powder core, the magnetic permeability mu=60+/-5 under a condition of 100kHz, loss Pcv<=700kW/m<3> under a condition of Bm = 0.1T, and the magnetic permeability decays to more than 65% when a direct-current bias magnetic field is at 100Oe; and the magnetic powder core has a better loss characteristic and higher direct-current bias capability, and effectively avoids noise defects.