U.S. core PCE inflation data for May showed a 3.4% year-on-year increase, the highest since October 2023, reducing expectations for imminent Federal Reserve rate cuts. This economic backdrop contributed to Bitcoin's decline to an intraday low of $58,000 on Thursday, its lowest since late 2024, before stabilizing around $59,000.
The market also saw significant outflows from U.S. spot Bitcoin ETFs, with net redemptions for six consecutive days, including $696 million on June 25. Spot Ethereum ETFs experienced similar outflows, totaling $81.9 million on the same day. Despite these trends, Bitcoin's dominance remains near 55%, indicating a shift towards high-quality assets rather than a broad market exit. CryptoQuant CEO Ki Young Ju highlighted that Bitcoin's risk/reward ratio has not yet reached historical cycle lows, suggesting the cycle bottom may still be distant.
Inflation Data Dampens Rate Cut Hopes, Bitcoin Hits 18-Month Low
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