Hotter-than-expected PCE inflation data has revived concerns that the Federal Reserve will keep interest rates higher for longer, pressuring risk assets including Bitcoin. The cryptocurrency dropped to $58,000 on June 25 as the inflation reading dampened hopes for near-term rate cuts. Compounding the selloff, US spot Bitcoin ETFs extended their net outflows to a six-day streak, signaling waning investor appetite and removing a key source of demand that had supported prices earlier in the year. Analysts describe the current price level as a fragile floor, warning that the combination of hawkish Fed signals and sustained ETF redemptions could trigger further declines if macroeconomic conditions fail to improve. The dual pressure highlights how closely Bitcoin's near-term trajectory remains tied to broader monetary policy expectations and institutional fund flows rather than crypto-specific catalysts.
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