May PCE inflation at 4.1% sparks equity sell-off and $600 million in crypto liquidations within an hour.
Bitcoin plunged to $58,035, its lowest since September 2024, after May’s US Personal Consumption Expenditures index rose 4.1%, the highest in three years. The print rattled equities, with the Nasdaq 100 dropping 2% in 30 minutes.
The Bureau of Economic Analysis reported a 0.4% month-over-month increase in PCE, and a 0.3% rise excluding food and energy. Year-over-year core PCE climbed 3.4%. The data mirrored 2022 bear-market conditions, triggering broad risk-asset declines.
Crypto markets saw $600 million in liquidations within an hour as BTC’s drop accelerated. The S&P 500 and Nasdaq Composite also extended losses, reflecting heightened rate-hike expectations.