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<p>Bitcoin has abruptly fallen below $68,000, causing a massive liquidation that affected over 75,000 traders. This unexpected decline comes amidst significant outflows from Bitcoin ETFs and growing economic uncertainties, fueled by anticipation of US inflation data and the upcoming Federal Reserve meeting.</p>
<h2 id="h-bitcoin-plunges-below-68-000">Bitcoin Plunges Below $68,000</h2>
<p>Bitcoin, <a href="https://www.cointribune.com/en/bitcoin-btc-is-the-new-third-world/" target="_blank" rel="noopener noreferrer nofollow">the king of cryptos,</a> has undergone a severe correction, dropping within minutes from nearly $70,000 to $67,500, its lowest level since June 3. This rapid drop led to the liquidation of over 75,000 traders, with total losses estimated at around $170 million. <a href="https://cointelegraph.com/news/bitcoin-drops-etfs-lose-inflow-steak-us-inflation-fed-meeting" target="_blank" rel="noopener noreferrer nofollow">Most of these liquidations involved long positions.</a></p>
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<p>Meanwhile, Bitcoin ETFs recorded net outflows of $64.9 million after 19 days of positive inflows. The Grayscale Bitcoin Trust was particularly affected, with an outflow of $39.5 million, followed by the Invesco Galaxy Bitcoin ETF with $20.5 million. In contrast, some ETFs, like the Bitwise Bitcoin Fund and BlackRock’s iShare Bitcoin Trust, saw modest inflows of $7.6 million and $6.3 million respectively.</p>
<h2 id="anticipation-of-us-inflation-data">Anticipation of US Inflation Data</h2>
<p>The recent drop in Bitcoin comes in a context of strong anticipation of crucial economic data in the United States, particularly those related to inflation. Analysts expect a 0.1% increase in the Consumer Price Index (CPI) for May, following a 0.5% rise in April. This slight increase would bring the annual inflation rate to 3.4%, while core inflation, which excludes volatile food and energy prices, is expected to rise by 0.3%.</p>
<p>The release of inflation data is critically important as it directly influences the Federal Reserve’s (Fed) monetary policy decisions. <a href="https://www.cointribune.com/en/crypto-the-three-threats-to-closely-monitor-this-week/" target="_blank" rel="noopener noreferrer nofollow">Persistent or rising inflation could prompt the Fed to maintain its high interest rates or even raise them.</a> Currently, interest rates are at a high level of 5.25% to 5.5%, a 23-year peak. This restrictive monetary policy aims to control inflation but also exerts downward pressure on risky assets like Bitcoin.</p>

$67,500! Bitcoin collapses and liquidates thousands of traders

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