Bitcoin bounces off new 2026 price lows: Will US stock weakness push BTC lower?
Bitcoin fell 9% in three days to its lowest level since September 2024, and the $58,000 test triggered over $1 billion in liquidations of bullish leveraged positions. It briefly recovered to around $59,500, but sentiment stayed weak even as stocks and gold erased intraday losses. The selloff came alongside the May PCE report showing 4.1% annual inflation, while lower Brent crude helped ease inflation fears and supported equities. Tech strength also boosted risk appetite, with Micron, Sandisk, and Applied Materials posting sharp gains. Bitcoin also lost support from fixed income and policy expectations: 5-year Treasuries yielded 4.15%, and markets priced an 80% chance of a Fed hike by December. Spot Bitcoin ETFs saw $469 million in outflows, and Strategy’s large unrealized Bitcoin losses further hurt confidence. A $13 billion options expiry on Friday is skewed bearish, with put open interest exceeding calls by $3.4 billion and most call options far above current prices.
