Bitcoin Tumbles to $58K as Macro Fears and Leveraged Liquidations Intensify

Bitcoin's price briefly dipped to $58,000 on Thursday as concerns about macroeconomic uncertainty and leveraged liquidations intensified market selling pressure. The decline coincided with a sharp reversal in US equities, erasing roughly $1 trillion from the S&P 500.

The short-term holder momentum continues to weaken, according to CryptoQuant, which stated that the Short-Term Holder (STH) Realized Price Year-on-Year Momentum has fallen deeper into negative territory. The metric declined from around -2.4% in mid-March to approximately -24% as of Tuesday.

The market-wide sell-off was attributed to renewed inflation fears and concerns surrounding the rising costs of artificial intelligence infrastructure. Approximately $500 million in leveraged Bitcoin long positions were liquidated in about an hour, accelerating Bitcoin's decline toward $58,000.