Bitcoin Price Slides To $59k As US Inflation Stokes Selloffs
Bitcoin (BTC) price declined to $59k on Thursday as US hot inflation stoked sell pressure in the crypto market amid increased expectations of a US Federal Reserve rate cut. The macro risk-off reset triggered. . .
Bitcoin (BTC) price declined to $59k on Thursday as US hot inflation stoked sell pressure in the crypto market amid increased expectations of a US Federal Reserve rate cut. The macro risk-off reset triggered sell pressure. A hotter-than-expected U. S. inflation report shifted market expectations toward further Fed tightening, pressuring all risk assets. U. S. Personal Consumption Expenditures (PCE) index rose 4. 1% year-over-year—a three-year high. This data dashed hopes for imminent Fed rate cuts, with markets now pricing in a potential hike by October. The resulting surge in the U. S. Dollar Index and Treasury yields triggered a broad exit from speculative assets, including crypto. Bitcoin is now trading like a macro risk asset, highly sensitive to interest rate expectations and dollar strength. The macro shock triggered a violent deleveraging event. Over $413 million in Bitcoin derivatives positions were liquidated in 24 hours. Concurrently, U. S. spot Bitcoin ETFs have seen seven consecutive weeks of net outflows, reflecting diminished institutional demand at current levels. Forced selling from over-leveraged traders and steady institutional exits created a feedback loop that accelerated the decline. Bitcoin’s market capitalisation plummeted by approximately $48 billion in just 25 minutes on the afternoon of June 25. The crash, starting around 3:30 PM, saw the price hit a yearly low near $58,887. Analysts cited a “long squeeze” where falling prices forced leveraged long holders to sell, accelerating the decline. Weak demand from U. S. institutions, indicated by a persistently negative Coinbase Premium Index, contributed to the thin liquidity that exacerbated the moveA stabilisation in ETF flows and a reduction in open interest signal that selling pressure is abating. Technically, Bitcoin is testing critical support. The $59,000–$60,000 zone is a “genuine battleground”, with the recent swing low at $59,029. 86. The immediate trend is bearish, but the market is at a level where buyer and seller conviction will be tested. A daily close above $61,800 would suggest short-term bottoming, or a break below $59,000 would confirm further downside. Bitcoin’s drop is a confluence of macro headwinds and internal market fragility. The path forward hinges on inflation trends and whether support levels hold. Bitcoin Price Drops to $62. 2k on Sustained ETF OutflowsJulius AlagbeJulius Alagbe is a senior financial journalist and Editor at MarketForces Africa with nearly two decades of experience in finance, accounting, and economics reporting. He is one of Nigeria's most prolific financial market reporters, covering capital markets, monetary policy, corporate earnings, banking, telecoms, and macroeconomic developments across Africa. Julius has built a strong footprint reporting on Nigeria's leading corporates and financial services sector, including coverage of the Nigerian Exchange Group, Central Bank of Nigeria monetary operations, MTN Nigeria, GTCO, and major investment banking transactions. He regularly monitors the CBN’s open market operations, interbank FX markets, and equity market movements, providing readers with real-time intelligence on Nigeria’s financial landscape. His reporting draws on direct access to institutional research from firms including Moody’s Ratings, CardinalStone Securities, Fitch, and other leading African investment houses. Julius brings analytical depth and editorial rigour to every story, making complex financial data accessible to professionals, investors, and policymakers across Africa. Julius Alagbe is based in Lagos, Nigeria.