Cryptocurrency markets suffered a broad selloff on Thursday as surging inflation data stoked fears of further Federal Reserve rate hikes, hammering digital asset prices across the board.
Bitcoin (CRYPTO: BTC) fell below $59,000, recording a 24-hour decline of 2.45% to trade at $59,273.96 as of 9:35 p.m. EDT.
Ethereum (CRYPTO: ETH) dropped 3.68% to $1,558.39, hitting an intraday low of $1,531 as selling pressure intensified throughout the session.
XRP (CRYPTO: XRP) declined 4.04% to $1.02, while Dogecoin (CRYPTO: DOGE) shed 3.11% to trade at $0.07384 during the same period.
The global cryptocurrency market capitalization fell 2.22% over 24 hours to stand at $2.09 trillion, reflecting the scale of the market’s retreat.
Over $890 million was liquidated from the cryptocurrency market in the last 24 hours, with long position traders bearing the brunt of the losses, according to Coinglass data.
Bitcoin’s open interest rose 0.38% over the same period despite the spot price decline, a move that often signals fresh short interest entering the market.
Cryptocurrency-related equities were also hit hard, with Strategy Inc. (NASDAQ: MSTR) closing down 9.44% and Bitmine Immersion Technologies Inc. (NYSE: BMNR) falling 4.99% on the session.
The headline Personal Consumption Expenditure price index, the Federal Reserve’s preferred inflation gauge, reached a 3-year high of 4.1% in May, as energy price pressures continued to spread through the broader economy.
The CME Group’s FedWatch tool showed traders pricing in a 48% chance of the Fed raising rates at its September meeting, adding further uncertainty to the market outlook.
Major equity indexes reflected the broader unease, with the S&P 500 slipping 0.01% to 7,357.49 and the Nasdaq Composite dropping 0.46% to settle at 25,358.60.
The Dow Jones Industrial Average bucked the trend, rallying 71.72 points, or 0.14%, to close at 51,920.62, offering a rare bright spot in an otherwise cautious session.
Analyst Rekt Capital reiterated a historical Bitcoin summer pattern, pointing to a red June close followed by a potential post-breakdown relief rally in July.
The analyst drew parallels with 2022-like macro conditions, warning that any July relief rally would likely face resistance at the 50-month exponential moving average, currently situated around $63,000.
Cryptocurrency analyst Ali Martinez identified Ethereum as sitting in a “crucial” volume block between $1,584 and $1,683, where nearly 4 million tokens have traded hands.
“Securing this specific area as support opens the path to the next major supply clusters at $1,980 and $2,079,” Martinez said, adding that “losing this baseline risks a deeper breakdown toward the demand zones at $1,237 or even $1,089.”
Among the session’s few bright spots, MemeCore (M) surged 50.90% to $0.8646, Data Network (DATA) climbed 27.34% to $0.4140, and Audiera (BEAT) gained 24.38% to $2.13 among cryptocurrencies with a market cap above $100 million.
