Crypto Markets Plunge Amid Soaring US Inflation

Crypto prices took a hit on Thursday after the US Bureau of Economic Analysis released May PCE data showing headline inflation rose to 4.1% year-over-year, the highest reading since 2023.

This marked the clearest catalyst for Wednesday's sell-off and Thursday's continued pressure. The higher rates make non-yielding assets like Bitcoin structurally less attractive.

BTC fell to a 21-month low of $58,115 before recovering toward $59,852, with the Fear and Greed Index deep in Extreme Fear at 20-23.

Ethereum dropped 5.64% as PCE inflation rose to its highest level since 2023, sealing rate-hike expectations for late 2026.

A $10.6 billion Bitcoin options expiry is settling on Deribit today, with 80% of open interest out of the money and max pain at $72,000.