The price of Bitcoin (BTC) fell to around $58,000 on Thursday, its lowest level since September 2024, after rising U.S. inflation dampened hopes for near-term interest rate cuts from the Federal Reserve.
US stocks fell in tandem, with the Nasdaq 100 erasing an intraday rally. Both markets turned lower after the Fed’s preferred measure of inflation rose faster than expected in May.
Hot inflation dampens interest rate cut hopes
The personal consumption expenditures price index rose 4.1% in May from a year earlier, its highest reading since April 2023. That was up from 3.8% in April, according to the government. a report. The core personal consumption expenditures index, which excludes food and energy, rose 3.4%.
The numbers point to a resilient economy, not a slowdown. Consumer spending rose 0.7% in May, above expectations, while first-quarter gross domestic product was revised to 2.1% from 1.6%. Some economists now see scope for this Potential higher interest rates Instead of discounts.
Under Chairman Kevin Warsh, Federal Reserve Bank detained The benchmark interest rate ranged from 3.5% to 3.75% in June and interest rates are expected to rise in the future. It linked part of the price pressures to energy supply shocks resulting from the conflict in the Middle East. This position has weakened Fed hopes to lower interest rates Across markets, traders expected a decline this year.
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The Bitcoin price slide mirrors the Nasdaq index
BTC was trading at over $61,800 earlier in the session before Bitcoin price drop acceleration. The token traded near $59,200 after that, down about 2.6% on the day. That left it roughly 53% below its October 2025 record of $126,080.
This decline sparked a wave of forced selling. Over $450 million of leveraged long positions were liquidated in about an hour.
throughout the market, Total crypto filters It reached $1.26 billion among more than 209,000 traders over a 24-hour period, according to Coinglass.
Cryptocurrency stocks and technology stocks have tracked each other closely this year. The Nasdaq 100 rose before reversing, echoing Big technology sell-off Earlier in June, this also led to a decline in Bitcoin. \
Higher interest rates increase the cost of holding risk, affecting both.
Whether $58,000 represents a floor may depend on the Fed’s next meeting in late July. With inflation high and growth stable, policymakers have little reason to cut spending. This leaves risky assets vulnerable to greater volatility.
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