Bitcoin drops to $58K on high US PCE inflation as trader sees 'manipulation'

Bitcoin dropped to $58,000 on April 12, 2024, reaching 21-month lows amidst broader stock market volatility. This decline coincided with the US Personal Consumption Expenditures (PCE) price index hitting three-year highs, a key inflation indicator. The increased market uncertainty led to approximately $600 million in cryptocurrency liquidations within a single hour. Analysts pointed to the inflation data as a primary driver for the sell-off, with some traders suggesting market manipulation may have exacerbated the price drop. The Federal Reserve's monetary policy decisions, influenced by PCE inflation figures, are closely watched by digital asset markets. This event underscores the sensitivity of Bitcoin and other cryptocurrencies to macroeconomic indicators and investor sentiment.