Bitcoin briefly fell below $58k! Core PCE inflation hit a 3-year high, triggering a global sell-off.

The annual increase rate of the US Core PCE rose to 4.1%, reaching a three-year high and leading to expectations that rate cuts are delayed. Bitcoin failed to absorb the selling pressure, falling below $58k and triggering $900 million in liquidations.

Core PCE Exceeds Expectations, Bitcoin Breaks Below $58k

The latest US-released Core Personal Consumption Expenditures Price Index (Core PCE) annual increase rate rose to 4.1%, marking a nearly three-year high and indicating that inflation pressure has heated up again. After the data was released, the market quickly adjusted its expectations for the Federal Reserve’s monetary policy. Selling pressure on Bitcoin ($BTC) emerged rapidly, with the price consecutively breaking through two key support levels at $60k and $58k.

This selloff quickly spread across the entire cryptocurrency market. Ethereum ($ETH) also fell below $1,600, while major cryptocurrencies such as Ripple ($XRP) declined in tandem. The stocks of several listed companies related to cryptocurrencies also saw clear pullbacks. As of the time of writing, Bitcoin is priced at $59,665 and Ethereum at $1,565.

Source: CoinGecko Bitcoin breaks below the key support level of $60k; Ethereum also drops below $1,600

Market analysts believe that after Core PCE came in above expectations, US Treasury yields rose and the US dollar continued to strengthen. As a result, funds began flowing into lower-risk assets, putting greater selling pressure on highly volatile cryptocurrencies.

The market reevaluates the rate-cut timeline as the dollar strengthens

Core PCE is one of the key indicators the Federal Reserve uses to assess inflation. After the latest data was released, the market began readjusting interest-rate expectations, believing the Fed may delay rate cuts, and even reassess the possibility of rate hikes—pushing the US Dollar Index higher as well.

After the dollar strengthened, global risk assets generally came under pressure. Analysts noted that in recent years, Bitcoin has maintained a high correlation with global liquidity and overall market risk appetite. If the high-interest-rate environment persists for longer, investors typically reduce their allocation to high-risk assets, and the cryptocurrency market is also likely to be affected.

On the other hand, after Bitcoin broke below key technical support, program trading and stop-loss sell orders increased at the same time, further amplifying the downside move in the short term and quickly shifting market sentiment toward caution.

Nearly $900 million in leveraged positions liquidated

After the price fell rapidly, large-scale liquidations occurred in the cryptocurrency derivatives market. According to Coinglass statistics, in the past 24 hours, the total liquidation amount in the global cryptocurrency market was nearly $900 million, with most of it coming from long positions.

Source: Coinglass In the past 24 hours, the total liquidation amount in the global cryptocurrency market was nearly $900 million, with most of it coming from long positions

After Bitcoin broke below $60k, a large number of highly leveraged long positions were forcibly closed. The cascading selling pressure quickly drove the price down to around $58k. Ethereum and other major cryptocurrencies also saw large-scale liquidations, and market volatility rose noticeably.

In addition, according to Deribit data, approximately $10 billion worth of Bitcoin options are set to expire this week. This is the largest quarterly options settlement in 2026, accounting for about 37% of all open positions on the platform. The market is also closely monitoring whether the options settlement will further increase price volatility, and how adjustments to derivatives positions may impact the spot market.

Source: Deribit Approximately $10 billion worth of Bitcoin options are set to expire this week, making it the largest quarterly options settlement in 2026

Inflation, ETF inflows/outflows, and Fed policy in the spotlight

Going forward, the market will continue to focus on the Federal Reserve’s policy direction, as well as whether subsequently released employment, inflation, and consumption data will change expectations for rate cuts. If inflation stays elevated and the dollar continues to strengthen, market risk appetite may face additional suppression.

On the other hand, capital flows into Bitcoin spot ETFs remain a key area to watch. In the recent period, ETF outflows—combined with weakening institutional buying—have reduced the market’s ability to absorb demand. If capital returns and helps Bitcoin regain important support zones, market sentiment could gradually improve.

Before macroeconomic factors and capital flows become clearer, the cryptocurrency market may remain in a high-volatility regime. Inflation data, Federal Reserve policy, and the movement of the US dollar will continue to influence the development of short-term market conditions.