Bitcoin drops to $58K after US PCE rises to 4.1%

Bitcoin fell to about $58,000 at Thursday’s Wall Street open after the US Personal Consumption Expenditures inflation measure unexpectedly rose to 4.1%. Price feeds showed BTC/USD near $58,035, the lowest level since September 2024, and the decline prompted heavy liquidations across cryptocurrency markets.

The Bureau of Economic Analysis reported the PCE price index for May increased 0.4% from the prior month and 4.1% year-over-year. The core PCE, which excludes food and energy, rose 0.3% month-over-month and 3.4% year-over-year.

Equity markets reacted at the opening bell. The Nasdaq 100 fell about 2% within 30 minutes, the Nasdaq Composite slipped roughly 0.5%, and the S&P 500 remained near flat. Bitcoin’s early-session volatility moved in parallel with these equity swings.

Data from trading platforms showed more than $600 million in cross-crypto liquidations within a single hour as leveraged long positions were closed during the price drop.

A pseudonymous trader who uses the name Killa wrote on X: “$BTC is in the manipulation phase. Every time $BTC trades sub-$60K, that is our manipulation beneath the significant $60K swing low on the weekly and quarterly. Precisely the reason why the orderbook is stacked below us.”

Niels Klaver, cofounder of STABL Agency, wrote that bitcoin appears to be heading for a final leg down of the current bear cycle and identified $55,000 as a short-term target. Analyst Rekt Capital wrote that $60,000 support is weakening and that the 50-month exponential moving average could flip from support to resistance if the slide continues. Rekt Capital added that the June monthly close will help indicate whether a relief rally could start in July.

As prices attempted a modest recovery later in the session, traders monitored resistance near $65,000 and technical signals on monthly and weekly charts. Market participants intend to follow upcoming economic releases along with on-chain and order book metrics to assess whether the lower prices represent a temporary squeeze or a continued correction.