Bitcoin Falls to 21-Month Low of $58,115 on Hot US Inflation Data

Bitcoin News

Bitcoin (BTC) slid to a 21-month low of $58,115 on June 25 after a batch of stronger-than-expected US economic data extinguished hopes of near-term interest-rate cuts. The Commerce Department's PCE price index, the Federal Reserve's preferred inflation gauge, accelerated to 4.1% year over year, its highest in roughly three years, while core PCE climbed to 3.4%. First-quarter GDP was revised up to an annualized 2.1% from 1.6%. The combination of resilient growth and re-accelerating inflation removed the Fed's main rationale for easing, and futures markets now price almost no cuts in 2026, leaving the non-yielding asset under acute pressure. Read more on our Bitcoin hub.

US spot Bitcoin exchange-traded funds bled $469 million in a single session, the largest daily outflow since early June and a sign that institutional demand is cooling. The redemptions were led by BlackRock's IBIT at $239.3 million and Fidelity's FBTC at $120.8 million, fund-flow data shows. The withdrawals coincided with BTC breaking beneath the psychologically important $60,000 mark, its weakest level since 2024. Buyers later stepped in, lifting the price back above $61,500 during European trading hours, but the pace of net outflows over the trailing 30 days has reached one of the worst stretches on record, capping any rebound attempt and weighing on overall sentiment.

The breakdown below $60,000 triggered a violent unwind across derivatives markets, deepening the broader bear market tone. More than $1 billion in leveraged crypto positions were liquidated over 24 hours, with Bitcoin long positions accounting for roughly $319 million of the total, according to liquidation data. Because over-leveraged bulls were forced to sell into a falling market, the cascade deepened the slide rather than cushioning it. This kind of forced deleveraging — where exchanges automatically close positions that can no longer meet margin requirements — tends to accelerate moves in both directions. The synchronized selling underscored how thin spot demand had become beneath the surface as macro headwinds intensified.

The weakness rippled through the broader market, dragging major altcoins and crypto-linked equities lower. Ethereum fell 3.1% to about $1,610, extending a poor run that has kept it far below the $2,000 level it struggled to reclaim through much of the second quarter. XRP dropped 3.1% to $1.07, flirting with a fall below $1 for the first time since President Donald Trump's 2024 re-election, while Solana lost 2.6% to $67 and Dogecoin slid 4.6% to 7.5 cents, its lowest since late 2023. The pattern reinforced a familiar dynamic: when Bitcoin is under sustained pressure, the rest of the market typically follows.

A key driver of the divergence is a rotation of speculative capital into artificial-intelligence equities trading near all-time highs. Memory-chip maker Micron Technology reported record quarterly revenue, gross margin and profit, guided to roughly $50 billion in next-quarter sales at an 86% margin, and disclosed 16 long-term supply agreements, sending its stock up about 17% in pre-market trade. Analysts note that money once flowing into Bitcoin and gold is now chasing AI infrastructure plays, with the four largest cloud providers slated to spend over $700 billion on capital expenditure in 2026. Gold itself slipped below $4,000, underscoring that both non-yielding assets are losing ground to AI-linked growth stories.

A Bitcoin-specific risk is also drawing scrutiny: the financing strain at corporate holder Strategy, formerly MicroStrategy. The company's variable-rate perpetual preferred shares, ticker STRC, fell to a record low of $80.26, roughly 20% below their $100 par value, the company's own disclosures show. STRC has been a cornerstone of Strategy's funding model, paying investors dividends in exchange for capital used to buy BTC. The discount to par suggests the market is questioning the firm's ability to sustain those payouts, particularly as the annual preferred-dividend burden is projected to surge from around $300 million at the start of 2026 to roughly $1.2 billion, raising fresh concerns about potential balance-sheet stress.

COINOTAG's proprietary 42-indicator composite scoring engine rates the $62,910 resistance at 73/100, driven by the confluence of the point of control, the 20-period EMA and the 0.236 Fibonacci retracement, while it scores the $58,115 support at 78/100 on the Fibonacci 0.000 level, the prior-day low and the lower Donchian band. Derivatives positioning is mixed: the perpetual funding rate is marginally negative at -0.0001% and open interest stands at $11.74 billion, yet a long/short account ratio of 2.41 shows 70.7% of traders still positioned long — a crowded bet vulnerable to further squeezes. With RSI at 30.7, a bearish MACD and a Fear & Greed reading of 13 (Extreme Fear), our reading is that a clean break below $58,115 opens the $51,387 zone, while only a reclaim of $62,910 would neutralize the downtrend.