Bitcoin's attempted rebound above $60,000 was abruptly halted, leading to a significant market downturn and $427 million in long liquidations. This collapse was triggered by hotter-than-expected inflation data, firmer economic activity, and lower jobless claims, which collectively dampened expectations for imminent interest rate cuts by the Federal Reserve. The data signals a persistent hawkish stance from central banks, increasing the cost of capital and reducing risk appetite across financial markets, including crypto. Investors should closely monitor upcoming inflation reports and Fed commentary for shifts in monetary policy outlook.
Persistent inflation and robust economic data signal a prolonged period of higher interest rates, directly impacting Bitcoin and Ethereum by increasing the cost of capital and reducing speculative flows. This macro environment elevates risk-off sentiment, making it harder for crypto assets to sustain upward momentum.
This event highlights crypto's increasing sensitivity to macro data, particularly inflation and interest rate expectations. The market's inability to hold key support levels under hawkish pressure suggests a continued struggle for upward momentum until the macro environment shifts.
Sticky inflation, firmer activity data, and lower claims left buyers without the rate-cut cover they needed. The post Bitcoin’s $60K rebound just collapsed as $427M in long liquidations followed sticky inflation data appeared first on CryptoSlate.