Bitcoin (BTC) fell toward $58,000 on Jun. 25 after U.S. inflation data revived concerns over tighter monetary policy.
Key Points:
- Bitcoin dropped to about $58,200 after May PCE inflation rose 4.1% from a year earlier.
- CoinGlass data showed $212.35 million in BTC long liquidations within one hour.
- The broader crypto market saw $1.34 billion in total liquidations as traders reacted to the macro data.
Bitcoin Drop
Bitcoin extended its decline Thursday after the U.S. Bureau of Economic Analysis said the Personal Consumption Expenditures price index rose 4.1% in May from a year earlier.
The reading was higher than the prior 3.8% figure and marked the strongest annual increase in three years, according to the report. Monthly headline PCE inflation rose 0.4%, while core PCE, which excludes food and energy, increased 0.3% for the month.
The data came in below Wall Street expectations of 4.2% annually and 0.5% monthly, but it still pressured crypto because inflation remained far above the Federal Reserve’s 2% target.
Bitcoin traded at $58,183.51 at press time, down 4.98% on the day, according to the figures cited in the report. TradingView data showed the sharp intraday decline, while CoinGlass reported $212.35 million in BTC long liquidations within one hour.
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Inflation Pressure
The report also pointed to steady demand in the U.S. economy. Real PCE spending rose $43.8 billion, or 0.3%, in May after adjusting for inflation.
Consumer spending increased by $156.1 billion, driven by a $94.3 billion gain in services and a $61.8 billion rise in goods purchases. Personal income rose $181.6 billion, or 0.7%, while per capita disposable income also climbed 0.7%.
Those figures matter for crypto because strong demand and persistent inflation can reduce the case for near-term rate cuts. If the Fed keeps policy tight or raises rates again, liquidity may contract across risk-sensitive markets, including Bitcoin and other digital assets.
The market reaction was broad. Total crypto liquidations reached $1.34 billion as traders cut leveraged positions after the inflation release.
Bitcoin’s latest slide fits into a wider period of pressure for the asset, with the token already weakening before the PCE report. The move showed how quickly macro data can turn a fragile decline into a forced liquidation event.