Bitcoin Slips Under $59,000 as U.S. PCE Inflation Rises and Liquidations Hit $1.26B
Bitcoin fell below $59,000 on Thursday after hotter U.S. inflation data, increasing ETF outflows and a wave of leveraged unwinds triggered another sharp risk-off move across crypto markets. BTC slid from above $61,000 to around $58,000 in roughly an hour, printing a fresh 21-month low during the selloff. At press time, it had rebounded to $59,180, still down 2.57% over the past 24 hours.
The drop followed the latest U.S. Personal Consumption Expenditures release, which showed annual PCE inflation at 4.1% in May, up from 3.8% previously. Even with the monthly and annual readings coming in below some Wall Street forecasts, inflation remained more than double the Federal Reserve's 2% target, keeping pressure on expectations for easier policy.
Bitcoin Break Below $60,000 Sparks Liquidation Surge
Liquidations accelerated as Bitcoin lost the $60,000 level. CoinGlass data showed total crypto liquidations of about $1.265 billion over 24 hours, with more than 209,000 traders liquidated. More than $500 million of that total was wiped out in the past hour alone during the steepest phase of the move. Long positions absorbed the bulk of the damage as traders positioned for a bounce were forced out.
Selling pressure also intensified as nearly $500 million flowed out of spot Bitcoin ETFs on Wednesday, aligning with the move below $60,000 and undermining one of the market's most closely watched institutional demand signals.
Risk appetite weakened across major tokens, with Ethereum and XRP also lower. Volatility rose as traders cut exposure around key technical levels.
PCE Inflation Reinforces 'Higher for Longer' Policy Fears
The PCE report added to concerns that the Fed may keep monetary conditions tight for longer. Elevated inflation tends to weigh on risk assets by reducing expectations for rate cuts and supporting a firmer U.S. dollar backdrop. The U.S. dollar index has recently reclaimed the 100 level, a development that has added pressure to Bitcoin and other assets that often perform better when liquidity is easier.
Markets have also marked down rate-cut expectations for 2026 as geopolitical tensions and sticky inflation keep the macro outlook challenging.
On-chain and market-structure signals remained fragile. Short-term holder realized momentum has continued to soften since turning negative in March, falling to about 24% year over year as of June 23, according to Glassnode. The metric suggests short-term holder cost-basis momentum is still under strain. Prior deep reset phases saw contractions between minus 55% and minus 65%, indicating the current drawdown has intensified but has not yet reached the most extreme historical reset ranges.
Bitcoin Tests Key Fibonacci Support as Long-Term Averages Turn Into Resistance
Bitcoin is now probing a major weekly support band around $57,800 to $60,000. The area lines up with the 0.618 Fibonacci retracement at $57,824, measured from the cycle low near $15,525 to the cycle high near $126,255.
BTC is also trading below the weekly 200-week moving average near $62,438, a level that has historically served as long-term support during major corrections. After breaking beneath it, that zone may act as resistance on any rebound.
The weekly 200-week exponential moving average sits higher near $68,677, forming a broader resistance range from roughly $62,400 to $68,700. To stabilize the longer-term technical picture, Bitcoin would need to reclaim the 200-week moving average and then push above the 200-week EMA.
If buyers hold the $57,800 to $58,000 area, BTC could attempt a relief move back toward $62,400. If that floor gives way, the next downside zones are seen near $52,000 and $50,000.
