Bitcoin drops below $60K after inflation data sparks liquidations

Bitcoin's move back above $60,000 broke down on June 25 after a fresh batch of US economic data reduced hopes for easier policy. For crypto investors, the reaction showed that macro releases are still driving short-term Bitcoin price action, especially when positioning is crowded on the long side.

BTC fell from an intraday high near $61,844 to about $58,189 in a sharp flush, then recovered part of the drop to trade around $59,630. Even after the bounce, it stayed below the range it held before the selloff, leaving $60,000 as a level buyers still need to reclaim.

Liquidations added force to the move. CoinGlass data showed about $482 million in crypto liquidations over one hour, including roughly $427 million from longs and about $54 million from shorts. Bitcoin made up around $272 million of that total.

The selloff followed data that pointed to firm demand and sticky inflation. May personal income and spending both rose 0.7%, while headline PCE inflation increased 0.4% month over month and 4.1% year over year. Core PCE rose 0.3% on the month and 3.4% on the year. First-quarter GDP was revised up to 2.1%, jobless claims fell to 215,000, and durable goods orders excluding transportation rose 1.3%.