Bitcoin crashed to $58,000 on Tuesday, down from its late-2025 peak above $126,000, after the Personal Consumption Expenditures price index for April 2026 came in at 3.8% year-over-year-the hottest reading since May 2023.
The data sparked a swift sell-off across risk assets. Over $600 million in leveraged long positions were wiped out within a single hour. Core PCE, stripping out food and energy, rose 3.3%, its steepest gain since November 2023.
Persistent inflation cements expectations that the Federal Reserve will keep interest rates elevated, raising the opportunity cost of holding non-yielding assets like Bitcoin. Traders now look to upcoming CPI and PCE reports for signals of a bottom.