Bitcoin Slips Below $60,000 After Hotter-Than-Expected U.S. PCE Inflation Print

Bitcoin sank below $60,000 on June 25 after the U.S. Personal Consumption Expenditures Price Index (PCE) came in above market expectations, pressuring risk assets across markets, CoinDesk reported. The move followed the open of U.S. equity trading and pushed bitcoin to its lowest level in roughly 21 months, weighing on the broader crypto complex. CoinDesk said that within 27 minutes of the U.S. stock market open, the Nasdaq 100 fell 1,000 points and the S&P 500 shed about $1 trillion in market value. Crypto tracked the selloff: bitcoin dropped about 5% within 30 minutes, ether slid to $1,566 and XRP fell to $1.03. PCE is the Federal Reserve's preferred inflation gauge. The hotter reading led markets to reprice the expected rate path, with investors leaning toward the view that elevated rates will persist for longer and potentially leave room for additional tightening. For crypto and growth stocks, that shift increases the appeal of higher-yielding assets such as bonds. CoinDesk noted U.S. Treasury yields remain high, drawing some capital away from higher-volatility holdings. As risk appetite faded, selling spread quickly through both equities and digital assets. The report also pointed to spot bitcoin ETF flows as an additional headwind. U.S. spot bitcoin ETFs recorded net outflows of $469 million over 24 hours, and have posted roughly $6 billion in cumulative net outflows across seven straight weeks, eroding a key source of demand that had supported prices since the start of the year. Forced selling from leveraged positions intensified the decline. As bitcoin broke key levels, long positions were automatically liquidated, reinforcing downward momentum. CoinDesk said about $460 million of leveraged positions were liquidated in a single hour, with total daily liquidations topping $1 billion, mostly from longs. Bitcoin was recently trading around $59,451. Total crypto market capitalization fell to about $2.04 trillion. The Fear & Greed Index dropped to 16, in the "extreme fear" zone. CoinDesk added that crypto's correlation with U.S. equities remains elevated, making it vulnerable to sharp moves when stock volatility rises. Traders are now watching whether $59,000 can be re-established as support; if that level gives way, the next support area is seen in the $55,000 to $57,000 range.