The Bitcoin (BTC) price fell to about $58,000 on Thursday, its lowest level since September 2024, after hotter US inflation dimmed hopes for near-term Federal Reserve rate cuts.
US stocks slid in tandem, with the Nasdaq 100 erasing an intraday rally. Both markets turned lower after the Fed’s preferred inflation gauge rose faster than expected in May.
Hot Inflation Dims Rate-Cut Hopes
The Personal Consumption Expenditures (PCE) price index rose 4.1% in May from a year earlier, its highest reading since April 2023. That was up from 3.8% in April, according to the government report. Core PCE, which strips out food and energy, climbed 3.4%.
The figures pointed to a resilient economy rather than a slowing one. Consumer spending rose 0.7% in May, above forecasts, while first-quarter gross domestic product was revised up to 2.1% from 1.6%. Some economists now see room for possible rate hikes instead of cuts.
Under Chair Kevin Warsh, the Fed held its benchmark rate at 3.5% to 3.75% in June and projected higher rates ahead. It tied part of the price pressure to energy supply shocks from the Middle East conflict. That stance has weakened Fed rate-cut hopes across markets, where traders had expected easing this year.
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Bitcoin Price Slide Mirrors Nasdaq Reversal
BTC had traded above $61,800 earlier in the session before the Bitcoin price decline accelerated. The token changed hands near $59,200 afterward, down about 2.6% on the day. That left it roughly 53% below its October 2025 record of $126,080.
The drop triggered a wave of forced selling. More than $450 million in leveraged long positions were liquidated within roughly an hour.
Across the market, total crypto liquidations reached $1.26 billion among more than 209,000 traders over 24 hours, according to Coinglass.
Crypto and tech stocks have tracked each other closely this year. The Nasdaq 100 had climbed before reversing, echoing a big tech selloff earlier in June that also dragged Bitcoin lower. \
Higher rates raise the cost of holding risk, weighing on both.
Whether $58,000 marks a floor may hinge on the Fed’s next meeting in late July. With inflation rising and growth steady, policymakers have little reason to cut. That leaves risk assets exposed to further swings.