Bitcoin slid to $58,035 after fresh US inflation data pushed risk assets lower. The May Personal Consumption Expenditures Price Index, the inflation gauge most closely watched by the Federal Reserve, rose 4.1% from a year earlier and 0.4% month over month. Core PCE, which excludes food and energy, increased 0.3% on the month. The release signaled that inflation is cooling more slowly than markets had hoped, and selling picked up quickly.
Stocks turned volatile as traders repriced inflation risk
The pressure was visible across traditional markets as well. At the time cited in the report, the Nasdaq Composite was down 0.5%, while the S&P 500 held only a slight gain. The sharper move came right after the opening bell, with the Nasdaq 100 falling 2% in just 30 minutes. That swing showed how sensitive risk assets had become to inflation data and interest-rate expectations.
Because PCE is the Fed’s preferred inflation measure, the latest reading carried extra weight. The numbers did not show the kind of cooling that would calm markets, and traders moved to cut exposure. Bitcoin, already known for fast moves during macro-driven sessions, reacted almost immediately.
More than $600 million liquidated in one hour
According to CoinGlass, total crypto liquidations topped $600 million within one hour across the market. Most of the forced closures came from long positions, showing that traders positioned for higher prices were caught by the speed of the drop. Once leveraged positions start getting closed automatically, the resulting selling can intensify the move.
In derivatives trading, a liquidation happens when an exchange closes a leveraged position because collateral is no longer enough to cover losses. During abrupt market moves, that process can feed a cascade and deepen short-term declines.
Analysts focus on $60,000 support and a possible $55,000 test
Commentary around the next key level is mixed. Niels Klaver, co-founder of STABL Agency, said the BTC pair appears to be nearing the final downward leg of this bear cycle and identified $55,000 as the next short-term target.
The pseudonymous trader Killa argued that Bitcoin is in a manipulation phase, though that claim has not been independently verified. Rekt Capital took a more technical view, saying support at $60,000 has clearly weakened. In his reading, the June monthly close should offer a clearer picture of where a rebound in July could begin.
Rekt Capital also said the current setup resembles the price structure seen during the 2022 bear market. If downside momentum continues, the 50-month exponential moving average could become the next major resistance area for Bitcoin.