Bitcoin (BTC) Price Drops 3% to 3-Week Low of $58.9K After Unexpected US Inflation Data

Bitcoin's price dropped by 3% in the last 24 hours, reaching a three-week low of $58,900 after unexpected U.S. inflation data.

Bitcoin price dropped by 3% over the past 24 hours, hitting a three-week low of $58,900 after the latest U.S. inflation data sparked fears that the Federal Reserve might pause interest rate cuts. However, BTC price showed signs of recovery, rising by 2.84% and trading at $60,602.

This price decline resulted in liquidations amounting to $196 million, impacting nearly 57,000 traders, according to data from Coinglass. Of those liquidations, Bitcoin long positions accounted for $67.18 million, while Ethereum traders experienced losses of $40.70 million.

The sell-off in Bitcoin mirrored investor concerns over an economic slowdown. September's Consumer Price Index (CPI) increased by 0.2%, sparking fears of stagflation, a scenario where prices continue to rise despite a stagnant economy. Additionally, jobless claims reached a 14-month high, with 258,000 people filing for unemployment benefits by October 5, as reported by CNBC.

In a bearish market development, Bitcoin ETFs experienced two consecutive days of net outflows, totaling $59 million, further dampening trader sentiment. Meanwhile, the U.S. SEC's lawsuit against Cumberland DRW for allegedly operating as an unregistered dealer in cryptocurrency transactions heightened regulatory uncertainty.

Despite the overall bearish sentiment, Metaplanet Inc. made a positive contribution by adding nearly 109 BTC to its holdings, valued at 1 billion yen, bringing its total Bitcoin assets to 748.502 BTC.

Traders responded cautiously, with Bitcoin futures and options markets indicating reduced confidence. The futures premium dropped below the 3% neutral threshold, a worrying sign of bearish momentum that could lead to further downside pressure.