A wave of $427 million in long liquidations swept through Bitcoin markets after fresh economic data undermined hopes for near-term interest rate cuts. Sticky inflation readings, firmer activity figures, and lower jobless claims collectively signaled a resilient economy, removing the dovish monetary backdrop that bullish traders had been counting on. Without the prospect of looser policy to support risk assets, Bitcoin's attempt to rebound toward the $60,000 level quickly reversed, leaving leveraged buyers exposed. The cascade of forced selling amplified the downturn as over-leveraged long positions were unwound. The episode underscores how closely crypto prices remain tied to macroeconomic expectations, particularly the trajectory of the Federal Reserve's policy. Traders who had positioned for a continued recovery were caught offside, highlighting the persistent vulnerability of heavily leveraged markets to shifts in inflation and broader economic data.
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