BTC falls under its 200-week moving average, a key bear market signal, ahead of U.S. inflation data expected to show a 4% rise.
Bitcoin dropped below $61,500, retracing gains from a brief Sunday rally above $64,000. The cryptocurrency now trades under its 200-week simple moving average, a level analysts link to extended bear markets. Historically, bitcoin has spent nearly 11 months near this threshold during downturns, raising concerns about prolonged weakness.
Derivatives data reveals growing bearish sentiment, with funding rates and positioning pointing to increased short bets. Tokens like zcash (ZEC) and Hyperliquid’s HYPE fell over 10% in 24 hours, while ADA, ONDO, and BCH declined more than 4%. The CoinDesk 20 Index lost 3% as traders await U.S. inflation figures, which may show a three-year high of over 4% for May.
Market focus remains on macroeconomic risks, with inflation data likely to influence Federal Reserve policy expectations. The broader crypto market’s decline reflects risk aversion ahead of the report, though Morpho’s token bucked the trend after a $175 million fundraise.