Bitcoin fell to 21-month lows as stock market volatility accompanied three-year highs in US PCE inflation, leading to $600 million in hourly crypto liquidations.
Bitcoin (BTC) hit new 21-month lows at Thursday’s Wall Street open as high US inflation unsettled stock markets.
Data from TradingView showed BTC/USD dropping to $58,035 on Bitstamp — a level it last traded at in September 2024.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
The May print of the US Personal Consumption Expenditures (PCE) index came in at 4.1%, setting a new three-year record.
“From the preceding month, the PCE price index for May increased 0.4 percent. Excluding food and energy, the PCE price index increased 0.3 percent,” a data release from the Bureau of Economic Analysis (BEA) stated.
US PCE one-month % change (screenshot). Source: BEA
Stocks reacted with volatility, with the Nasdaq Composite Index down 0.5% at the time of writing, while the S&P 500 managed to eke out a gain.
The Nasdaq 100, meanwhile, saw a larger snap decline of 2% in just 30 minutes at the open.
“What a chart,” trading resource The Kobeissi Letter responded on X.
Bitcoin itself sparked considerable long position liquidations, with CoinGlass putting the cross-crypto liquidation total at $600 million over a single hour.
Crypto liquidation history (screenshot). Source: CoinGlass
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