Bitcoin fell below $59,000 on Thursday as hotter U.S. inflation data, rising ETF outflows, and heavy leveraged liquidations pushed the crypto market into another sharp risk-off move.
BTC dropped from above $61,000 to near $58,000 in about one hour, marking a fresh 21-month low during the selloff. However, as of press time, BTC had recovered to $59,180 but was still down 2.57% in the last 24 hours.
The latest decline followed U.S. Personal Consumption Expenditures data showing annual PCE inflation at 4.1% in May, up from 3.8% in the previous reading. Although the monthly and yearly figures came in below some Wall Street forecasts, inflation remained more than double the Federal Reserve’s 2% target, keeping pressure on expectations for easier monetary policy.
Bitcoin Flash Crash Triggers Heavy Liquidations
Crypto liquidations accelerated as Bitcoin broke below $60,000. CoinGlass data showed total market liquidations reached about $1.265 billion over 24 hours, with more than 209,000 traders liquidated.
More than $500 million was liquidated in the past hour alone during the sharpest part of the move. Long positions took the largest hit as traders positioned for a rebound were forced out of the market.
Source: X
Bitcoin ETF outflows added to selling pressure with nearly $500 million flowing out of spot BTC ETFs on Wednesday, coinciding with the decline below $60,000. The outflows weakened one of the market’s most-watched institutional demand channels.
Ethereum and XRP also fell as risk appetite weakened. The broader crypto market remained under pressure as traders reduced exposure across major assets and volatility increased around key technical levels.
PCE Inflation Keeps Fed Policy Pressure on Crypto
The PCE inflation report reinforced concerns that the Federal Reserve may keep monetary policy tight for longer. Higher inflation can reduce demand for risk assets because it lowers expectations for rate cuts and supports a stronger dollar environment.
The U.S. dollar index recently reclaimed the 100 level, adding pressure to Bitcoin and other assets that often trade better during periods of easier liquidity. Traders have also priced down rate-cut expectations for 2026 after geopolitical tensions and sticky inflation data kept macro conditions difficult.
Bitcoin’s decline came as the market structure remained fragile. Short-term holders realized price momentum has continued to weaken since turning negative in March, falling to about -24% year over year as of June 23.
Source: Glassnode
That reading shows short-term holder cost-basis momentum remains under pressure. Past deep reset periods saw contractions between minus 55% and minus 65%, meaning the current decline has intensified but has not yet reached the most extreme historical reset zones.
Bitcoin Tests 0.618 Fibonacci Support Zone
Bitcoin is now testing a key weekly support area near $57,800 to $60,000. That zone aligns 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 acted as long-term support during major corrections. After losing that level, Bitcoin may face resistance around $62,400 on any rebound.
Source: X
The weekly 200-week exponential moving average sits higher near $68,677, creating a broader resistance band between about $62,400 and $68,700. Bitcoin would need to reclaim the 200-week moving average first, then move above the 200-week EMA, to repair its longer-term technical structure.
If buyers defend the $57,800 to $58,000 area, Bitcoin could attempt a relief move back toward $62,400. If that support fails, the next downside zones sit near $52,000 and $50,000.