Bitcoin Falls to Lowest Level Since 2024 After Rising Inflation and Nasdaq Pullback

Hotter PCE inflation lowers the odds of a Fed rate cut and also puts pressure on the Nasdaq 100. In crypto, the drop triggered more than $1.26 billion in liquidations.

Key Takeaways

• Bitcoin fell to around $58,000 on Thursday, its lowest level since September 2024, after U.S. inflation came in hotter than expected.
• PCE inflation rose to 4.1% year over year in May, which lowered expectations for a Federal Reserve rate cut.
• The drop sparked major crypto liquidations and came alongside a pullback in the Nasdaq 100.

The Bitcoin price fell to around $58,000 (€51,100) on Thursday, its lowest level since September 2024, after U.S. inflation came in hotter than expected. That cooled expectations for a near-term rate cut from the Federal Reserve, and it also helped drag the Nasdaq 100 lower, wiping out an earlier intraday rally.

Inflation Data and the Impact on Rate Policy

The Personal Consumption Expenditures (PCE) price index rose 4.1% in May from a year earlier, the biggest increase since April 2023. That was up from 3.8% in April. Core inflation, which strips out food and energy, came in at 3.4%. The numbers point to a resilient economy, with consumer spending rising 0.7% in May and first-quarter gross domestic product revised up to 2.1%. Because of that, some economists are now factoring in possible rate hikes instead of cuts.

The Federal Reserve, led by Chair Kevin Warsh, kept its policy rate steady in June between 3.5% and 3.75%, while signaling a higher-rate outlook. The Fed tied some of the price pressure to energy supply shocks from the conflict in the Middle East. That stance has pushed expectations for rate cuts this year lower, and that shows up in market reactions.

Bitcoin and Nasdaq Move in Similar Ways

Bitcoin traded above $61,800 (€54,500) earlier in the day, but the sell-off picked up speed after that and the digital asset was trading around $59,200 (€52,200), down about 2.6% on the day. That puts Bitcoin about 53% below its record high of $126,080 (€111,200) from October 2025. The drop triggered forced selling, with more than $450 million (€397 million) in leveraged long positions liquidated in about an hour.

In total, crypto liquidations over 24 hours reached $1.26 billion (€1.1 billion), spread across more than 209,000 traders. The correlation between the crypto market and tech stocks remains strong, and the Nasdaq 100 saw a similar reversal after an earlier June sell-off that also put pressure on Bitcoin. Higher interest rates raise the cost of risk assets, which adds pressure to both tech stocks and cryptocurrencies.

Expectations Ahead of the Next Fed Decision

Whether $58,000 (€51,100) will hold as a floor depends on the next Fed meeting at the end of July. With inflation rising and economic growth holding steady, policymakers have little reason to cut rates. That keeps risk assets, including Bitcoin, vulnerable to more price swings.

This situation shows how complicated the relationship is between Federal Reserve policy and the crypto market. While lower interest rates are usually good for riskier investments, recent trends show that market reactions to Fed decisions are not always predictable, and higher rates can make traditional investments more attractive at the expense of digital assets like Bitcoin.

The recent drop fits into a broader debate about where the bottom is. On-chain signals point to a possible low in the $48,000 (€42,300) to $57,000 (€50,300) range, although that has not been confirmed yet.