Bitcoin Plunges Below $60,000 as Inflation Report Sparks Selloff

The sudden crash of Bitcoin below $60,000 on June 25 sent shockwaves throughout the crypto market. The trigger was a hotter-than-expected U.S. inflation report that raised the probability of the Federal Reserve keeping interest rates elevated for longer, potentially raising them further.

This news sparked a brutal selloff across every risk asset simultaneously, with the Nasdaq 100 falling 1,000 points and the S&P 500 erasing $1 trillion in market value within just 27 minutes of the stock market opening. Crypto followed immediately, with Bitcoin dropping 5% in 30 minutes, $460 million in leveraged positions liquidated in a single hour, and over $1 billion in total liquidations across the session.

The inflation shock was the spark that ignited this selloff, but three forces combined to make the damage significantly worse than it might otherwise have been. ETF outflows drained approximately $6 billion from Bitcoin ETFs, removing one of the key demand pillars that supported prices during the early part of the year.