In today’s crypto news, Bitcoin and the broader crypto market have turned sharply lower after a fresh wave of U.S. inflation data shook financial markets. Bitcoin dropped below $80,000 while Ethereum slid toward $2,250. The move also triggered a rapid wave of liquidations across leveraged positions.
According to market data, traders lost more than $57 million in long positions within a single hour. The selloff also spread into traditional markets, with the NASDAQ, S&P 500, and Dow Jones all falling after the latest inflation reports.
Inflation Data Sparks Crypto Market Panic
The latest economic data came in much hotter than expected. April’s Consumer Price Index (CPI) rose 3.8% year-over-year. That marks the highest inflation reading in roughly three years. Core CPI also climbed to 2.8%, its highest level in eight months.
Producer inflation accelerated even faster. The Producer Price Index (PPI) came in at 1.4%, far above analyst expectations of 0.5%. The previous reading was 0.7%, meaning producer inflation doubled month over month.
These numbers immediately changed expectations around Federal Reserve policy. Investors had hoped inflation would cool enough for rate cuts later in 2026. Instead, the latest reports suggest inflation remains stubbornly high. As a result, expectations for interest rate cuts collapsed. Prediction markets now estimate the odds of a 2026 rate cut at below 40%. Meanwhile, the probability of another rate hike in 2026 has reached 30%.
Bitcoin Technicals Turn Bearish
At the same time, technical indicators are weakening. Crypto analyst Ted Pillows noted that Bitcoin’s daily RSI uptrend has broken down. He also pointed out that the MACD indicator has flipped bearish. In addition, the Coinbase Bitcoin Premium has turned negative. That metric often reflects weaker U.S. spot demand and growing institutional caution. According to Ted Pillows, a Bitcoin drop toward $60,000 is becoming a matter of when, not if.
Other analysts are even more bearish. Market analyst King of the Charts argued that Bitcoin may be forming a large bear flag pattern. Based on the projected move, the analyst suggested that Bitcoin could theoretically revisit the $15,000 range if the pattern plays out fully.
These predictions remain speculative. However, they show how quickly market sentiment has deteriorated after the latest inflation reports.
Liquidations Accelerate the Selloff
The decline intensified as exchanges began liquidating leveraged long positions. Bitcoin briefly dropped toward $78,700 before stabilizing at its current price. Ethereum also fell near $2,238 before climbing to $2,254, where it is currently hovering.
Liquidation events often amplify volatility in crypto markets. As positions close automatically, exchanges create additional selling pressure. That process can quickly turn a normal correction into a much larger move.
The latest chain of events proves that macroeconomic conditions are becoming the biggest driver of crypto prices. This trend is emerging, especially as Bitcoin and crypto become a major fixture of institutional finance. Investors are watching closely to see whether Bitcoin can stabilize above key support levels. The alternative is that inflation fears and tighter monetary policy will push markets even lower.
Temitope Olajide
The CoinRemark Team
