$1.34 Billion Liquidated as Bitcoin Crashes to$58K After Inflation Data

Bitcoin tumbled to $58,007 on Thursday, down nearly 5%, after the latest PCE inflation report came in hot. The Bureau of Economic Analysis showed prices up 4.1% year over year in May, a jump from April’s 3.8% reading and the highest level in three years.

The selloff triggered $327.35 million in long liquidations within an hour, according to CoinGlass data.

Spending And Income Still Climbing

Core PCE, which strips out food and energy, rose 0.3% monthly and 3.4% annually. Consumer spending grew $43.8 billion in real terms, while personal income climbed $181.6 billion. The personal savings rate landed at 3.0%.

First quarter GDP growth also got revised upward to 2.1%, signaling the economy isn’t slowing as fast as some hoped.

What It Means For Crypto

Sticky inflation plus a resilient economy gives the Fed room to keep rates elevated longer. That’s bad news for risk assets. Total crypto liquidations hit $1.34 billion as traders bailed.