Bitcoin fell sharply at the Wall Street opening after the inflation data announced in the USA and fell to $ 58,035. This level was recorded as the lowest price since September 2024. The selling pressure in the cryptocurrency market coincided with the volatility in stocks.
Inflation data shook the markets
The US Personal Consumption Expenditures price index was announced as 4.1 percent on an annual basis in May. While the monthly increase was 0.4 percent, the core indicator excluding food and energy increased by 0.3 percent. While the data in question indicated that inflation did not cool down as quickly as expected, it accelerated sales in risky assets.
According to data from the US Bureau of Economic Analysis, the PCE price index increased by 0.4 percent on a monthly basis in May. The increase in the PCE price index, excluding food and energy, was measured as 0.3 percent.
Volatility also attracted attention in stock markets. While the Nasdaq Composite Index decreased by 0.5 percent at the time of writing, the S&P 500 remained positive, albeit limited. The Nasdaq 100 fell 2 percent in just 30 minutes after the opening.
Liquidations exceeded $600 million in one hour
The sudden decline in Bitcoin brought about large-scale liquidations on the futures side. According to CoinGlass data, over $600 million in positions were closed in the total cryptocurrency market within an hour. It was seen that most of the sales were concentrated in long positions.
CoinGlass is widely known as a data platform that tracks liquidation data in crypto derivatives markets. Liquidation means the automatic closing of a leveraged transaction by the exchange due to lack of collateral.
Mini dictionary: Liquidation is the automatic closing of the transaction in leveraged transactions to protect the collateral when the price moves sharply against the investor’s position. This process can increase chain sales in a short time.
Niels Klaver, co-founder of STABL Agency, stated that the BTC parity seems to be moving towards its last downward move in this bear cycle, and the $ 55,000 level stands out as the target in the short term.
Analysts drew attention to the support of 60 thousand dollars
Some commentators in the market suggested that price movements were manipulated to squeeze positions. Investor nicknamed Killa argued that Bitcoin was in a manipulation phase. These reviews have not been independently verified.
On the other hand, analyst Rekt Capital stated that the support of 60 thousand dollars has weakened significantly. According to the analyst, when the month of June closes, it can be seen more clearly at which level a possible reaction rise may start in July.
Rekt Capital also stated that the current outlook is similar to the price structure in the 2022 bear market. According to the analyst, the 50-month exponential moving average may emerge as the next important resistance zone.
