Bitcoin drops under $59,000 as May PCE inflation hits 4.1%

**Bitcoin drops below $59K after hot US inflation data**

Bitcoin fell under the $59,000 mark as fresh US inflation numbers added pressure to crypto markets.

The Bureau of Economic Analysis reported May PCE inflation at 4.1% YoY — a key gauge for Federal Reserve rate policy. Hotter inflation keeps “higher-for-longer” rate expectations in play, weighing on liquidity-sensitive assets like crypto.

BTC hit multi-month lows during the drop. More than $450M in leveraged long positions were liquidated, per CoinGlass estimates. Liquidations amplified selling as exchanges auto-close positions.

US spot Bitcoin ETF flows also showed outflows, adding to market weakness. Analysts note multiple factors converged — inflation concerns, ETF pressures, spot market softness, and leverage unwinds.

A downside target near $54K is seen as a possible level to watch if BTC cannot reclaim $59K and hold above it.

Key short-term drivers to monitor:
- ETF flow trends
- Funding rate shifts
- New liquidation spikes
- Next US inflation data release

Without easing macro conditions and reduced forced selling, traders may stay defensive. For now, Bitcoin trades between long-term adoption sentiment and short-term macro drag.

Sources: BEA May 2026 PCE release, CoinGlass