Bitcoin falls to $58K as US PCE sparks $600M liquidations
Bitcoin (BTC) slid to $58,000, its lowest level since Sep 2024, after a sharp risk-off move tied to hotter-than-expected US PCE inflation. The May US Personal Consumption Expenditures (PCE) price index rose to 4.1% YoY, a three-year high.
Equities amplified the sell-off. The Nasdaq 100 dropped about 2% within 30 minutes at the Wall Street open, while overall market volatility rose. In crypto, BTC/USD on Bitstamp fell to roughly $58,035.
The move triggered intense derivatives stress: CoinGlass reported over $600M in cross-crypto liquidations in a single hour, driven largely by long-position unwinds as BTC traded below $60K.
Traders debated whether the drop was organic or engineered. One pseudonymous account said $BTC is in a “manipulation phase,” pointing to liquidity/orders stacked below a key weekly/quarterly swing low. STABL Agency cofounder Niels Klaver suggested BTC may be entering the “final leg down,” with a $55K short-term target.
Technically, analysts flagged $60K support as weakening and highlighted $65K as a potential new resistance zone. Rekt Capital also noted market behavior resembling 2022 and warned the 50-month EMA could act as resistance after June closes.
For traders: this is a liquidity-driven, macro-triggered volatility event for Bitcoin, with major liquidation flows likely increasing short-term whipsaw risk.
Bearish
The article describes a macro-driven downside move: hotter US PCE data triggered an equity sell-off, which spilled into crypto and pushed Bitcoin below $60K. The market then amplified the drop via derivatives mechanics—over $600M liquidations in one hour—typically strengthens bearish momentum in the very short term because forced sellers and stop-outs can keep price pressured even after initial panic passes.
The discussion of “manipulation” and the focus on $55K target suggests traders expect liquidity to be hunted further below recent swing levels. Meanwhile, technical commentary points to weakening $60K support and a potential $65K resistance area, implying that even if a rebound occurs, rallies may face selling pressure.
Historically, events combining macro risk-off shocks with large liquidation bursts often create two phases: (1) immediate sharp downside/volatility while leverage is flushed; (2) slower stabilization or dead-cat bounces where technical levels (support turned resistance) matter. Longer-term direction still depends on whether Bitcoin can reclaim key breakdown zones and hold them; otherwise, the move could extend the bearish structure into subsequent weekly/monthly closes.