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According to Cointelegraph, Bitcoin (BTC) experienced a sharp correction during the Wall Street opening on Thursday, retreating to levels not seen since September 2024. The downward move coincided with a period of intense market volatility triggered by the release of the US Personal Consumption Expenditures (PCE) index.
Inflation data sparks market sell-off
The Bureau of Economic Analysis reported that the May print for the PCE price index reached 4.1 percent, marking a new three-year high. This figure caused immediate ripples across various asset classes. Specifically, the Nasdaq 100 experienced a rapid decline of 2 percent in just 30 minutes at the market open, while the broader Nasdaq Composite Index fell by 0.5 percent.
The impact on the cryptocurrency sector was equally severe. Data from TradingView indicated that BTC/USD dropped to $58,035 on the Bitstamp exchange. This price action mirrored trends observed during the bear market of 2022, leading many traders to brace for further downward pressure. The rapid decline resulted in a massive liquidation event, with CoinGlass reporting cross-crypto liquidations exceeding $600 million in one hour.
Trader sentiment and technical analysis
Market participants have expressed varying views on the current price action, with some suggesting that large players are actively managing the order book to squeeze out retail positions. Some analysts point toward specific psychological levels as key targets for the coming weeks:
Despite the immediate crash, some analysts suggest that the market is seeking a definitive monthly close to determine if a relief rally will occur in July. The current environment remains highly sensitive to macroeconomic data, particularly regarding interest rates and persistent inflation trends. Investors are closely watching whether Bitcoin can stabilize above its recent lows or continue toward deeper bear market territory.