A hotter-than-expected US Personal Consumption Expenditures (PCE) inflation print, which reached three-year highs, rattled financial markets and pressured risk assets including Bitcoin. The leading cryptocurrency fell to 21-month lows near $58,000 as stock market volatility increased and macroeconomic uncertainty deepened. The sharp decline triggered roughly $600 million in crypto liquidations within a single hour, amplifying downward momentum as leveraged long positions were forcibly closed. The elevated inflation data raised concerns about the path of interest rates and broader monetary policy, weighing on investor sentiment. Amid the steep sell-off, at least one trader characterized the price action as potential market 'manipulation,' suggesting the move may have been exaggerated beyond fundamentals. The episode highlights Bitcoin's continued sensitivity to US economic indicators and the cascading effects that liquidations can have during periods of heightened volatility across both traditional and digital asset markets.
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