Bitcoin drops to $58K on high US PCE inflation as trader sees 'manipulation'
Bitcoin fell to new 21-month lows near $58,035 as stronger-than-expected US inflation data shook risk assets. The May PCE index rose 4.1% year over year, its highest in three years, fueling volatility in stocks and a sharp crypto selloff. More than $600 million in crypto positions were liquidated in about an hour as BTC lost key support below $60,000. The Nasdaq also dropped sharply at the open before stabilizing somewhat. Market commentary turned increasingly bearish, with some traders calling for a move toward $55,000 and suggesting that sub-$60,000 moves were being used to trigger liquidations. Technical analysts said $60,000 support is weakening and that BTC may face new resistance around $65,000. One view compared current price action to the 2022 bear market, with the 50-month EMA seen as the next major resistance level.
