Bitcoin Crashes Below $120K as Inflation Fears Trigger $461M Liquidation Bloodbath

Bitcoin's bull run hits a wall—hard. The king of crypto nosedives under $120,000 as US inflation data sends shockwaves through leveraged positions. Nearly half a billion dollars gets vaporized in minutes.

Wall Street's 'inflation transitory' chorus looks dumber by the minute. Meanwhile, crypto traders are left picking up the pieces after the most brutal liquidation event since the 2022 Terra collapse.

This isn't your grandma's market correction. When $461 million vanishes faster than a Sam Bankman-Fried alibi, you know volatility's back on the menu. Buckle up.

Bitcoin waits for US inflation results

Market analysts also attribute Bitcoin’s pullback to broader economic conditions in the United States.

Analysts at Bitfinex noted that Bitcoin investors have adopted a cautious stance ahead of the US Consumer Price Index (CPI) release. The CPI tracks the average price change paid for goods and services. It is a vital measure of inflation and reflects a currency’s purchasing power.

The analysts told CryptoSlate that:

“With core inflation expected around 3.0–3.1% YoY, a hotter-than-expected print (e.g., core >3.2%) could delay Fed easing, dampen market sentiment, and raise borrowing costs. This WOULD strengthen the dollar and hurt demand for non-yielding assets like Bitcoin, potentially extending the pullback by another 5–10%.”

However, a softer CPI reading could flip the market narrative, especially if headline inflation drops below 2.5% and Core trends toward 2.9%. They stated:

“In May, we saw this play out: a cooler CPI print led to a sharp rally across both equities and crypto. A similar outcome today could push bitcoin back toward $120K+ again especially if ETF inflows remain strong as they have in the past 2 weeks.”