After the latest US inflation figures were released, Bitcoin tumbled sharply during the Wall Street opening, falling as low as $58,035. This marks the lowest level recorded since September 2024. The sudden sell-off in the cryptocurrency market coincided with heightened volatility in major stock indices.
Inflation data rattles markets
The US Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred gauge of inflation, rose 4.1% year over year in May. On a monthly basis, the index climbed 0.4%, while the core indicator—which excludes food and energy—increased by 0.3%. The data indicated that inflation is cooling less rapidly than anticipated, accelerating the sell-off across risk assets.
According to the US Bureau of Economic Analysis, in May the PCE Price Index gained 0.4% monthly, with the core PCE index (excluding food and energy) rising by 0.3%.
Stock markets also saw a spike in volatility. At the time of reporting, the Nasdaq Composite Index was down 0.5%, with the S&P 500 managing a slight gain. Notably, the Nasdaq 100 dropped 2% within just 30 minutes of the opening bell, underscoring the nervous sentiment spreading through risk assets.
Liquidations top $600 million in one hour
Bitcoin’s rapid drop triggered large-scale liquidations in the derivatives market. According to data from CoinGlass, over $600 million worth of crypto positions were wiped out within a single hour across the entire market. The majority of these forced closures were on long positions, reflecting how investors betting on higher prices were caught off guard.
CoinGlass is a widely followed data platform tracking liquidation trends in crypto derivatives markets. In this context, “liquidation” refers to a leveraged position being automatically closed out by an exchange due to insufficient collateral to cover losses.
Mini glossary: In leveraged trading, “liquidation” occurs when a price move sharply opposes an investor’s position, triggering an automatic closure to protect collateral. This process can swiftly fuel further cascading sell-offs.
Niels Klaver, co-founder of STABL Agency, commented that the BTC pair appears to be approaching the final downward leg of this bear cycle, identifying $55,000 as the next short-term target.
Analysts highlight critical $60,000 support
Some market commentators have argued that recent price swings are being orchestrated to squeeze positions. The pseudonymous trader Killa claimed that Bitcoin is currently in a manipulation phase, though these assessments have not been independently verified.
In contrast, analyst Rekt Capital pointed out that the $60,000 support level has clearly weakened. According to him, after the June monthly close, it will become clearer from which level a potential rebound in July might begin.
Rekt Capital also noted that the current market environment resembles the price structure of the 2022 bear market. In his view, the 50-month exponential moving average could now act as the next significant resistance zone for Bitcoin if downward momentum persists.
