Home / Business and Economy / Inflation Surge Sends Bitcoin Below $58K
Inflation Surge Sends Bitcoin Below $58K
27 Jun
Summary
- Bitcoin hit $58,000, its lowest since September 2024.
- Hotter US inflation data dimmed Federal Reserve rate cut hopes.
- Over $450 million in leveraged crypto positions liquidated.
The price of Bitcoin (BTC) plummeted to around $58,000 on Thursday, marking its lowest level since September 2024. This sharp decline occurred after the release of US inflation data that exceeded expectations, diminishing hopes for an early reduction in Federal Reserve interest rates.
The key inflation gauge, the Personal Consumption Expenditures (PCE) price index, rose to 4.1% year-over-year in May, up from 3.8% in April. Core PCE also increased, indicating persistent price pressures. This data suggests a robust economy rather than a decelerating one, prompting some economists to consider the possibility of rate hikes.
In tandem with Bitcoin's fall, US stocks also experienced a downturn, with the Nasdaq 100 reversing earlier gains. This correlated movement highlights the sensitivity of both tech stocks and cryptocurrencies to macroeconomic indicators like inflation and interest rate expectations.
The market saw significant liquidations, with over $450 million in leveraged long Bitcoin positions being wiped out within an hour. Total crypto liquidations exceeded $1.26 billion across more than 209,000 traders in 24 hours, signaling widespread deleveraging.
