Bitcoin drops to $58K on high US PCE inflation as trader sees 'manipulation'
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- Bitcoin dropped to $58,035 on Bitstamp — its lowest level since September 2024 — after May PCE inflation came in at 4.1% year-over-year, a new three-year high.
- The Bureau of Economic Analysis reported the PCE price index rose 0.4% from the prior month, with core PCE (excluding food and energy) up 0.3% month-over-month and 3.4% year-over-year.
- The Nasdaq 100 shed 2% in just 30 minutes at the Wall Street open, while the Nasdaq Composite was down 0.5% and the S&P 500 eked out a slight gain.
- Cross-crypto liquidations topped $600 million in a single hour according to CoinGlass, driven by long-position unwinds as BTC broke lower.
- Pseudonymous trader Killa claimed Bitcoin is "in the manipulation phase," arguing the orderbook is stacked below $60K and every sub-$60K trade is designed to squeeze positions.
- Niels Klaver, cofounder of crypto platform STABL Agency, said BTC/USD is heading for "its final leg down of this bear market" with $55K as his target.
- Analyst Rekt Capital said $60,000 support is "clearly weakening" and that the 50-month EMA is tipped to become new resistance, drawing direct parallels to 2022 bear-market price action.
Why it matters: A 4.1% PCE print — the hottest in three years — hit crypto and tech equities simultaneously, with the Nasdaq 100 losing 2% in 30 minutes. The $600 million in hourly liquidations shows leveraged longs are being flushed out, and with traders publicly targeting $55K, a break of the $60K support level risks accelerating forced selling across the crypto market.
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