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Bitcoin tumbles to 21-month low after hotter-than-expected US PCE print
Bitcoin (BTC) tumbled to roughly $58,000 at the Wall Street open, revisiting its lowest levels since September 2024 as the latest US inflation data rattled risk markets. The May Personal Consumption Expenditures (PCE) index — the Federal Reserve's preferred inflation gauge — printed a stronger monthly and annual gain than traders had hoped, prompting a rapid reassessment of rate expectations and pushing equity volatility higher. That volatility spilled into crypto markets, triggering large-margin liquidations and intensifying downside momentum for BTC/USD.
BTC/USD one-hour chart.
Market reaction: equities slide, traders squeezed
The Bureau of Economic Analysis (BEA) reported that May’s headline PCE rose noticeably month-over-month, and that core PCE — excluding food and energy — also accelerated on an annual basis. Those readings lifted concerns that interest rates may stay elevated longer, driving a sharp short-term reaction in tech-heavy indexes and crypto correlated assets. The Nasdaq 100 posted a dramatic 2% drop within the first 30 minutes of trading, while the Nasdaq Composite and S&P 500 diverged slightly as risk flows rotated.
US PCE one-month % change (screenshot).
Crypto liquidations surge past $600M in an hour
The price shock sparked heavy deleveraging across exchanges. CoinGlass data showed more than $600 million in cross-crypto liquidations within a single hour as leveraged long positions were forcibly closed. Rapid liquidations exacerbated the decline and amplified intraday volatility, a common dynamic when major macro prints collide with leveraged crypto exposure.
Crypto liquidation history (screenshot).
Claims of manipulation and orderbook dynamics
In the immediate aftermath, some market participants argued that price action reflected more than pure macro pressure, pointing to orderbook clustering and targeted squeezes. A prominent pseudonymous trader suggested that BTC had entered a phase where downward moves are used to hunt stops below psychological levels — specifically beneath the $60,000 swing low — citing stacked sell-side liquidity under that price as a trigger for engineered pullbacks.
Short-term targets and technical outlook
On-chain and trading analysts diverged on near-term direction. Niels Klaver, cofounder of STABL Agency, warned that BTC/USD could be seeking a final leg lower within the ongoing corrective phase, naming $55,000 as a short-term target for some traders. Others emphasized that weekly and monthly structure will determine whether this is a deeper correction or a multi-month bear-market extension.
BTC/USDT one-week chart.
Technician Rekt Capital flagged that the $60,000 support band was visibly weakening and suggested the 50-month exponential moving average could flip from support to resistance — a pattern reminiscent of the 2022 drawdown. The coming monthly close will be critical: it should reveal whether July can mount a relief rally from lower levels or if markets will consolidate under new resistance zones.
BTC/USD one-month chart.
BTC/USD one-month chart. with 50EMA.
What traders should watch next
Traders and investors should monitor three key data points: incoming US macro signals (especially any Fed commentary on inflation), the stability of the $58K–$60K support band, and exchange orderbook depth that may indicate where squeezes could occur. Given persistent macro uncertainty, elevated volatility and episodic liquidation risk are likely to remain near term. Risk management — including position sizing, stops, and reduced leverage — is advised as market structure continues to be tested.
In sum, today’s combination of hotter PCE inflation and equity market volatility produced a swift BTC correction and concentrated liquidations. Whether this marks a short, sharp shakeout or a deeper retracement will depend on macro developments and whether BTC can reclaim the $60K region as a reliable support level.
Source: cointelegraph
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